Of 22 brokerages covering BP, 14 have a Buy or Strong Buy rating and the others rate the stock at Hold. At a recent price of almost $40.00 per American depositary share (ADS), the implied upside to a median price target of around $44.00 is 10%. At the high price target of about $60.00, the upside potential is about 50%. One ADS is equal to six common shares traded in London.
The consensus estimate for first-quarter revenue is $5.42 billion, which would be down 15.7% sequentially but up 18.6% year over year. Adjusted earnings per ADS are forecast at $1.44, down 15.7% sequentially and by 25.0% year over year. For the 2023 fiscal year, analysts expect BP to report EPS of $6.30, down 28%, on sales of $234.73 billion, down 2.8%.
BP’s ADSs trade at 6.3 times expected 2023 EPS, 6.5 times estimated 2024 earnings of $6.18 and 6.8 times estimated 2025 earnings of $5.88 per ADS. The stock’s 52-week trading range is $25.36 to $41.38. BP pays an annual dividend of $1.44 (yield of 3.65%). The total shareholder return for the past year was 46.31%.
Enterprise Products Partners
Energy pipeline operator Enterprise Products Partners L.P. (NYSE: EPD) has posted a share price gain of less than 1% over the past 12 months. It is the largest oil and gas midstream (pipeline and infrastructure) company in the country, with a market cap of about $57.1 billion. The company’s payout ratio is nearly 75%, thanks in large part to its master limited partnership structure. Enterprise’s guaranteed cash flows from long-term contracts are mostly insulated from commodity price swings, making the distributions that Enterprise and its peers pay to limited partners even more popular when times are bad.
Of the 22 brokerages covering the stock, 18 have a Buy or Strong Buy rating and the other rate it at Hold. At a share price of around $26.20, the stock trades about 22% below its median price target of $32.00. At the high target of $37.00, the upside potential on Enterprise stock is 41.2%.
Revenue for the first quarter is forecast at $13.75 billion, up about 0.8% sequentially and by 5.7% year over year. Adjusted EPS are forecast at $0.62, down 4.5% sequentially but 3.3% higher year over year. For the full 2023 fiscal year, analysts expect to see $2.55 in EPS, up 1.4% year over year, on sales of $55.76 billion, a decrease of 4.2%.
Enterprise stock trades at 10.3 times expected 2023 EPS, 10.0 times estimated 2024 earnings of $2.64 and 9.5 times estimated 2025 earnings of $2.76. The stock’s 52-week range is $22.90 to $28.65, and the company pays an annual distribution of $1.96 (yield of 7.36%). Total shareholder return for the past 12 months was 7.25%.
Pfizer
Drugmaker Pfizer Inc. (NYSE: PFE) has posted a share price dip of about 23% over the past 12 months. More than all that decline (24.3%) has come since the beginning of the year. Pfizer booked $100 billion in revenue last year but expects a drop of at least 33% in 2023. Half of last year’s total was down to its COVID-19 vaccine, and that boost is not coming again this year. At least Pfizer does not face the loss of a patent-protected treatment in 2023, but several, including Eliquis and Xeljanz, lose exclusivity by 2030.
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