RBC stays at 'buy' on BP, sees higher buybacks in 2022

Analysts at RBC Capital kept their recommendation for shares of BP at 'sector perform' following the oil major's latest update.

In their opinion, the negative share price reaction was largely due to the company's decision to slow-down its share buybacks "buyback, which suggests a cauous approach in the face of an improving macro environment."

Nevertheless, despite the impossibility of forecasting certain factors, such as working capital, they continued to expect underlying improvement in BP's free cash flow and hence a higher buyback in 2022.

RBC also stood by its 425.0p target price on BP.