BP plc (ADR) (BP) To Keep Growing Despite Concerns Over The Impact Of Sanctions In Russia

London-Based oil giant, BP plc (ADR) (NYSE:BP), remains bullish over its prospects going forward, despite the ongoing standoff in Russia  that has waged a wave of concerns, considering the company has huge interests in the Russian energy sector. RBC Capital Markets’ Peter Hutton has an ‘Outperform’ rating on the company after the company continued to show consistent growth on its year-over-year growth prospects especially in the U.S. liquid division.

“We have BP plc (ADR) (NYSE:BP) as an ‘Outperform’ with a price target of $530. One of the things we highlighted last quarter was quite a milestone for BP in that, that was the first quarter where they showed year-on-year growth in U.S. liquids, and those are some of the most profitable parts of BP’s business,” said Mr. Hutton in an interview on CNBC.

BP plc (ADR) (NYSE:BP)

Last quarter alone, BP plc (ADR) (NYSE:BP) has built on U.S liquids strength with the segment growing by 28% on a year-over-year basis. BP has already announced a 65% increase in profit that came in at $3.4 billion as the company continues to recover from the Gulf of Mexico oil spill of 2010. Cost cutting measures are also starting to have a major impact on earnings as the company continues to simplify its operation.

BP plc (ADR) (NYSE:BP) is one of the few stocks in the market according to Mr. Hutton that is offering fair value with a greater option of consolidation of the entire business, as well as simplification of its operations. Mergers have been mooted as one of the plays that major oil companies may opt to engage in, going forward. Hutton, on his part, believes that BP will mostly opt for asset-mergers rather than full-blown mergers.

“[...] We think some of the stocks are at around their fair levels. BP plc (ADR) (NYSE:BP) is one of the few which is offering some value. I think there is more like an opportunity for consolidation; there is an opportunity for simplification of the business and turn to drive costs down. I think the oil companies themselves will be looking to do that through potential sort of asset mergers rather than full-blown corporate mergers,” said Mr. Hutton.

Disclosure: none

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!