BP plc (ADR) (NYSE:BP) is trending today after Lucas Herrmann of Deutsche Bank upgraded the integrated producer to ‘Buy’ from ‘Hold’. The analyst upgraded the stock, citing BP’s relative under-performance over the last two quarters versus competitors as one reason for more optimism (presumably, BP stock might catch up with peers if the company performs). In terms of news flow, Herrmann is bullish as more project starts increase volume produced and raise investor confidence in BP’s dividend. In addition, Hermann believes BP’s dividend is sustainable and that the company could potentially buy back stock in the latter half of 2018. BP plc (ADR) (NYSE:BP) shares currently yield around 7% at current prices.
What Does The Smart Money Sentiment Say?
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According to our data, 26 top funds owned shares of BP plc (ADR) (NYSE:BP) at the end of December, down 4 funds from the previous quarter. Those numbers are out of the 742 elite funds we track in all. Richard S. Pzena‘s Pzena Investment Management was the largest elite holder, with a stake of 6.4 million shares at the end of December.
The Bottom Line
BP plc (ADR) (NYSE:BP) is in the spotlight today after an Deutsche Bank upgraded the equity to a ‘Buy’. According to the analyst, BP’s dividend is sustainable and the upcoming project starts might boost sentiment concerning the stock. For more oil related reading, check out the ‘10 Countries Running Out of Oil‘.