Berenberg Ups BP Price Target on Expectations of Further Debt Reduction; Estimates Revised

05:09 AM EDT, 08/18/2026 (MT Newswires) -- Berenberg bumped up its price for BP (BP.L) to 6.05 pounds sterling from 6 pounds, with an unchanged buy rating on the stock, as it noted the oil and gas major's ongoing efforts to further lower its debt. "BP is targeting a further c$14bn reduction in net liabilities in H2, underpinned by disposals and a working capital unwind. This should leave net debt at around $9bn-11bn before leases and hybrids at the end of 2026, below the low end of the $14bn-18bn target. There could be a further $6bn+ of disposals in 2027, which we believe will be accretive to value and should enable a resumption of buybacks. The stock will likely remain sensitive to commodity price movements, but should emerge as a leaner and more focused company," analysts said in a note published Tuesday. "With a more solid balance sheet, the focus could switch to high-margin growth projects in the portfolio, while more consistent delivery could be rewarded with a higher multiple," Berenberg added. Taking these and BP's "strong" second-quarter results into account, the research firm lifted its adjusted EPS estimate by 10.5% for 2026, largely driven by higher refining earnings. For 2027 and 2028, the adjusted EPS projections were downwardly adjusted.