Benchmark Cuts Price Target & Raises Estimates on BP (BP), Sees Dividend Increase in 2012

Benchmark is reaffirming its Buy rating on shares of BP (NYSE: BP), but is cutting its price target from $70 to $55.

The firm notes that their new price target reflects earnings uncertainty. They are tweaking their estimates due to model revisions in their oil price, production, and unit cost assumptions.

For 2011 and 2012, the firm is raising its EPS estimates from $6.48 and $5.27 to $6.88 and $6.11.

Benchmark reiterates its belief that Macondo related liability exposure remains at $30 billion.

With BP continuing to build its balance sheet, due to strong free-cash-flow growth, the firm forecasts a dividend increase in 2012.

For more ratings news on BP click here and for the rating history of BP click here.

Shares of BP closed at $36.43 yesterday.

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