- BP (BP +0.7%) is upgraded to Buy from Hold with a $42 price target at Argus, which believes company management is committed to maintaining the current annualized dividend of $2.40, which yields ~6.4% - well above the average of 5.6% for other supermajors in the firm's coverage group.
- Argus also thinks BP's cost-cutting and restructuring efforts are helping to offset the impact of lower oil prices and positioning the company for higher earnings as prices recover.
- The firm adds that BP's $18.7B settlement of outstanding claims related to the 2010 Gulf of Mexico oil spill eliminates a worst-case scenario.