Investing.com — Shares of BP PLC (LON:BP) rose up to 2.4% to the highest level in three months after the oil and gas group signaled strong trading activity in its Q2 update report.
Analysts at Jefferies say this update will drive a “significant improvement” in earnings expectations, potentially boosting the consensus earnings forecast by more than 10%. This positive reaction came after competitor Shell released a weaker update earlier this week.
Analyst Giacomo Romeo from Jefferies emphasizes that BP’s better-than-expected performance has been driven by higher upstream output and contributions from stronger-than-expected trading activity.
The oil and gas company also forecasts slightly lower net debt, which analysts believe will be positively received by investors. Jefferies sees slight upside potential versus the consensus forecast for operating cash flow before working capital adjustments.
Jefferies maintains a hold rating for BP shares with a target price of 390 pence.
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