Oil Majors: Are BP And Chevron Attractively Valued After Share Price Tumbles?
Portfolio Pulse from Neil Dennis
BP's shares have dropped nearly 17% since their 2023 peak, underperforming compared to ConocoPhillips and Exxon Mobil. RBC Capital Markets believes BP is undervalued and has raised its price target, citing reasons such as BP's commitment to shareholder returns, its profitable trading division, and a significant restructuring program. Chevron's shares have also fallen sharply, exacerbated by a $53 billion acquisition of Hess, making both BP and Chevron potentially attractive at current valuations.
November 27, 2023 | 4:22 pm
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NEUTRAL IMPACT
ConocoPhillips has experienced a minor decline year-to-date, performing better than BP, but the article does not provide a specific outlook for COP.
The article mentions COP's performance only in comparison to BP, without any specific recommendations or outlook, suggesting a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 20
RELEVANCE 30
NEUTRAL IMPACT
Exxon Mobil's shares are down 5.2% in 2023, showing more resilience than BP. The article does not provide further analysis or outlook for XOM.
Exxon Mobil is mentioned as a comparative benchmark to BP's performance, with no specific forward-looking statements made in the article, indicating a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 20
RELEVANCE 30
POSITIVE IMPACT
BP's shares have significantly underperformed, but RBC Capital Markets has raised its price target and maintains an Outperform rating, suggesting potential undervaluation and a positive outlook.
RBC's raised price target and Outperform rating indicate a belief in BP's potential for recovery, which could positively influence investor sentiment and the stock's short-term performance.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Chevron's shares have dropped 19.3% year-to-date, further impacted by a $53 billion deal to acquire Hess. Despite the fall, the current valuation may be attractive for investors.
The sharp decline in Chevron's share price, particularly after the Hess acquisition, may have led to an attractive valuation, which could interest dividend-seeking investors and positively impact the stock short-term.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80