HSBC upgrades BP and TotalEnergies shares to buy — CNBC
HSBC upgraded BP and TotalEnergies to 'buy' due to higher European natural gas prices, with a 34% and 40% price forecast increase for 2023 and 2024, respectively. Analyst Kim Fustier expects improved forecasts for their oil businesses and refining margins, potential cash generation, and share buybacks. JPMorgan also upgraded BP to 'overweight', citing business simplification and growth prospects, including a significant discovery in Brazil.
How this was made
The 30-second read
Why it matters
The upgrades provide a new catalyst that could drive buying interest and lift share prices in the short term.
Market read
Analyst upgrades for major oil majors are likely to generate immediate buying pressure, especially given the backdrop of rising European gas prices.
What to watch
Potential regulatory risks in Europe and execution risk on new projects.
Background
HSBC and JPMorgan issued fresh analyst upgrades for BP and TotalEnergies, citing higher gas prices and new discoveries.
Ticker impact
HSBC upgraded BP to "buy" and JPMorgan raised BP to "overweight", citing higher gas prices and a large Brazil discovery.
likely upward pressure as investors price in the upgrade and higher gas forecasts
Analyst upgrades are fresh and directly target BP's valuation, prompting buying interest.
Market effects
Higher European gas prices improve outlook for integrated oil & gas majors.
European energy stocks may see broader gains.
Upgrades could influence global commodity‑linked equities.
Counterpoint
If gas prices fall, the upgrades may be premature.
Key entities
- analystHSBC
Upgraded BP and TotalEnergies to "buy".
- analystJPMorgan
Raised BP to "overweight".
