MARKET TALK: BP's Latest Cap Could Cap Shr Losses, If It Works

15th Jul 2010 07:46

0646 GMT [Dow Jones] The installation of BP's (BP.LN) capping stack device is an important step in rehabilitating the stock and the focus will now shift to paying damages says Citigroup. "The quantum of penalties and punitive damages that BP is forced to pay is key since they are not tax deductible." Citigroup argues that the market continues to discount the higher end of potential fines. Meanwhile, it says BP remains well capitalized and liquid enough to deal with the consequences of the spill. Keeps buy recommendation and 590p price target. Shares closed Wednesday at 401.0p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 15, 2010 02:46 ET (06:46 GMT)