TLDR
- BP received upgrades from both Argus and Royal Bank of Canada following exceptional Q1 2026 results
- First-quarter adjusted net income reached $3.198 billion, translating to $1.24 per share versus $0.91 expected
- Argus elevated the stock to Buy with a $50 price target while RBC set an Outperform rating with GBX 700 target
- Strong upstream output, improved refining margins, and robust oil trading activity fueled the quarterly outperformance
- Shares trade at $43.34 in New York and GBX 535.60 in London
BP (BP) received a pair of bullish calls from Wall Street analysts on Monday, as both Argus and Royal Bank of Canada elevated their ratings on the integrated energy company after it delivered first-quarter results that significantly exceeded expectations.
The oil major reported adjusted net income of $3.198 billion for the first quarter of 2026, translating to $1.24 per share. This represents a substantial increase from the $1.381 billion, or $0.53 per share, recorded during the comparable quarter in the prior year.
The earnings figure comfortably surpassed Argus’s projection of $1.14 per share and handily beat the Street’s consensus estimate of $0.91 per share.
Argus elevated its stance from Hold to Buy while establishing a $50.00 price objective. Based on the current New York Stock Exchange trading price of $43.34, this target represents notable appreciation potential.
Royal Bank of Canada independently raised BP to Outperform, assigning a GBX 700 price target for the London-traded shares. With BP opening at GBX 535.60 in London trading on Monday, RBC’s projection suggests roughly 30.7% upside from current levels.
What Drove the Beat
The first-quarter outperformance stemmed from three primary factors: elevated upstream production volumes, enhanced realized refining margins, and strong performance from the company’s oil trading operations. While lower price realizations created headwinds, they were insufficient to materially impact the overall positive momentum.
BP indicated it anticipates 2026 full-year production volumes will remain consistent with 2025 levels. The company has established capital expenditure guidance ranging from $13.0 billion to $13.5 billion. Management does not provide full-year earnings forecasts.
The energy giant has preserved its dividend continuity. On August 5, 2025, BP increased its quarterly distribution by 4% to $0.4942 per share, representing an annualized rate of $2.00. Argus forecasts dividends of $2.08 for 2026 and $2.12 for 2027.
The stock delivers a current yield of 4.56%. BP has sustained uninterrupted dividend payments for 35 consecutive years.
Analyst Sentiment
The wider analyst community maintains a favorable outlook on the stock. Among analysts providing coverage on BP, nine have issued Buy recommendations while two maintain Hold ratings, resulting in a Moderate Buy consensus view.
The mean price target among these analysts stands at GBX 635. RBC’s recently established GBX 700 objective represents the high end of this spectrum.
Recent research from Goldman Sachs, Barclays, and DZ Bank all reaffirmed Buy recommendations during late April and early May. JPMorgan and Jefferies both maintained Neutral stances during the same timeframe.
On the London exchange, BP’s 52-week trading range extends from GBX 379.70 to GBX 562.30. The stock is presently trading near the upper boundary of this range.
According to InvestingPro’s fair value assessment, the NYSE-listed shares appear undervalued at the current $43.34 level.
Insider Carol Howle acquired 62 BP shares on March 10 at a price of GBX 510 per share. Company insiders have collectively purchased 142 shares during the past 90 days and presently control 0.26% of outstanding shares.
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