BP (BP +0.9%) bumps higher as BMO analyst Daniel Boyd initiates coverage with an Outperform rating and $53 price target, believing BP's multi-year transformation is "on the cusp of paying dividends" and noting the company generates competitive return on capital employed after years of lagging.
Boyd also says BP is not reliant on any one mega-project and has one of the most diverse pipelines of new projects.
BP is Boyd's top oil major stock pick, but he is also bullish on Chevron (CVX +1.6%), which he rates at Outperform with a $165 target, citing its strong presence in the Permian Basin and sustained 5% dividend growth.
Boyd also offers praise for Exxon Mobil (XOM +1%) because of the company's "best in class" upstream portfolio, but rates the stock only at Market Perform due to valuation and risks to near-term guidance.
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