- Oppenheimer's Fadel Gheit raises his price target on BP (BP -0.8%) to $50 from $45 while maintaining an Outperform rating, projecting the company to be free cash flow positive in 2016.
- Gheit calculates BP's operating cash flow at $22.5B in 2015 and $27.3B in 2016, after funding $20B in capex and a $5.95B dividend in each year, and expects the company to have a free cash flow deficit of $3.6B in 2015 but turn positive by $1.3B the following year.
- "Management believes the portfolio is diverse enough to balance fiscal and geopolitical risk while allowing it to focus on its strengths, which provides a unique platform for the future," Gheit writes.