Credit Suisse ups target price on BP

BP performed well in the run-up to the 'mini Strategy Update' on 27 October, Credit Suisse pointed out on Thursday, but in the end most of the points discussed were neither new nor unexpected.

The company´s assertion that 80% of its ´fit for FID (final investment decision)' projects can 'break-even' at less than $60 per barrel is also questionnable, analyst Thomas Adolff said.

Furthermore, the oil major´s underlying thesis that it can go from 'utterly disappointing' project execution to 'perfect execution' from one cycle to the next is "unrealistic", the analyst added.

"There are also question marks surrounding portfolio depth and quality. We do think BP can moderately grow to 2020, but question the outlook beyond with the resource base currently available to the company."

On the basis of the above, Adolff upped his target price on shares of BP to 365p from 350p while maintaining his recommendation on the shares at 'underperform'.