UPDATE: Morgan Stanley Downgrades BP (BP) to Underweight
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Morgan Stanley analyst Martijn Rats downgraded BP (NYSE: BP) from Equalweight to Underweight.
The analyst comments "BP is pivoting sharply towards renewables, but unlike other majors, also moves sharply away from oil & gas production. Speed of the changes that BP is planning creates a degree of uncertainty for investors: even if BP is successful, earnings and cash flow over next decade are hard to estimate. Uncertainty is compounded by company indication that dividends will not grow in coming years, even if its strategy is successful. We forecast near-term dividend growth to be minimal, although expect a return to 1-2% growth over the medium/long-term."
Shares of BP closed at $25.18 yesterday.
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