MARKET TALK: Deutsche Bank Reduces BP Target Price

18th Jun 2010 08:04

0704 GMT [Dow Jones] Deutsche Bank reduces BP (BP.LN) target price to 480p from 720p, but retains a buy rating. DB says the creation of a $20B claims fund together with clear details of how that fund is to be financed, should go a long way to removing the uncertainties around BP's liquidity. However, "with BP's cash flow and competitive position materially undermined, we target a 20% sector discount on 2011 EPS of circa 65p implying a 480p price target," DB says. It adds that with the relief well not expected to cap Macondo before mid-August, risk remains significant. Shares +0.6% at 362p.([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 18, 2010 03:04 ET (07:04 GMT)