BP cut to underweight at JPMorgan after third-quarter results

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BP cut to underweight at JPMorgan after third-quarter results
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Steven Goldstein is based in London and responsible for MarketWatch's coverage of financial markets in Europe, with a particular focus on global macro and commodities. Previously, he was Washington bureau chief, directing MarketWatch's economic, political and regulatory coverage. Follow Steve on Twitter: @MKTWgoldstein.

BP BP, -2.10% BP, -4.62% was downgraded to underweight from neutral at JPMorgan, following the oil major’s third-quarter results. “This year is revealing BP’s cashflows as increasingly leveraged to wider standard deviation variables – notably trading and working cap,” said analysts led by Christyan Malek.

Its price target was cut to 550 pence from 615 pence, and the analysts said they have a clear preference for Shell SHEL, -1.44% and TotalEnergies TTE, -0.52%. The analysts also say there’s the potential for further, renewables-led clearing of the decks, as well as the rise the fourth-quarter buyback may be scaled down to $1 billion.

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