Broker tips: BP, Ocado, Zoopla

BP is broadly rated by the market consensus at a ‘buy’ after results beat forecasts on Tuesday, though Hargreaves Lansdown Stockbrokers warned investors not to be complacent if crude prices remain at depressed levels.

It said: “The current oil price, if it is to remain at these levels, will eventually pile further pressure on the sector in general, and it remains to be seen whether dividend payments will at some point need consideration. BP’s Russian exposure is a further drag on prospects, whilst the fallout from the Gulf of Mexico spill has yet to be finalised once and for all.”

Ocado has delivered its first-ever annual profit and analysts at Shore Capital have welcomed the milestone but still kept a ‘sell’ recommendation on the online grocer.

The broker said investors will still have to wait before Ocado can deliver “material” earnings per share, which stood at just 1.18p last year. The company would need to achieve this before its stock price can be considered a sensible value, Shore Capital said.

Numis Securities has reiterated its ‘add’ stance on Zoopla but has lowered its forecasts for the group due to heightened competition in the estate agent portal industry after the launch of OnTheMarket last month.

“Whilst we remain sceptical of the long-term impact from this launch by Agents' Mutual, near-term press commentary and estate agent statements suggest that Zoopla has faced the lions share of leavers, with market leader Rightmove proving significantly more resilient,” Numis said.