'Second chance': how BP regained Wall Street's trust
An oil company becomes a market favorite
Wall Street for the year sharply increased the number of recommendations to buy securities of British oil company BP / Photo: BP
The number of analysts who recommend to buy securities of oil giant BP has increased more than 2.5 times over the year. Wall Street's estimates were influenced by the war in the Middle East, which boosted oil prices and gives the company an opportunity to restore its financial health.
Details
13 Wall Street analysts assigned "bullish" ratings to BP, while a year ago there were only five such analysts, Bloomberg noted. The target prices assigned by them suggest a 13% growth in the company's quotations over the next 12 months.
The last to join the optimists was RBC Capital Markets: on Monday, Ma. 11, it improved the rating of BP, advising to buy its securities, the agency reports. The bank's analysts noted that the combination of high oil prices, successful exploration works and recent change of management may have a positive impact on the oil company's business.
It is noteworthy that the revision of ratings occurs in parallel with the growth of the company's quotations: since the beginning of the year they have jumped by 24%.
A chance to restore balance
A year ago, the picture was fundamentally different: the oil giant was under pressure due to a high debt load, Bloomberg notes. At the end of 2025, it amounted to $22.2 billion. The turnaround was provided by the rapid recovery in oil prices - it sharply increased BP's profits and opened the opportunity to restore the balance sheet, the agency says.
"The current earnings surprise gives BP a second chance to deleverage and regain financial health," the RBC analysts wrote.
Through the first quarter of 2026, the company's adjusted net income more than doubled - thanks in large part to the exceptional performance of its domestic trading division, which benefited from the volatility triggered by the Iran crisis.
At the same time, debt increased to $25.3 billion as BP was forced to allocate more funds to reserves and financing of longer oil supply routes, Bloomberg explained. However, the rate of debt growth has slowed: in the first quarter of 2025, it reached $26.97 billion.
After the release of the financial results, BP's top managers promised to cut it, calling strengthening the balance sheet a priority.
This article was AI-translated and verified by a human editor
