Source: Sharecast
Berenberg said exploration success was improving visibility on future production growth, and could provide "an important source of funds" as some larger discoveries were farmed down.
The German bank also stated BP's $20bn disposal programme was starting to deliver, with roughly $5bn now agreed and processes ongoing for some of the larger pieces – including its Castrol lubricants unit, the Gelsenkirchen refinery and Lightsource BP.
"We believe that falling net debt, combined with an improving outlook across upstream and stronger delivery in downstream, can drive relative outperformance," said Berenberg, which reiterated its 'buy' rating on the stock.
"We have increased our EPS estimates by 6%/3% for 2025/26 respectively, driven by higher gas and refining assumptions. We increase our price target to 525p (from 490p; the ADR increases to $41.50 from $39), based on a target EV/DACF multiple of 5.9x 2027E (previously 6x 2026E)."
Reporting by Iain Gilbert at Sharecast.com