MARKET TALK: Exane BNP Cuts BP Price Target

7th Jul 2010 12:45

1145 GMT [Dow Jones] Exane BNP Paribas cuts its BP (BP.LN) price target by 35% to 450p as it incorporates Macondo spill costs into its forecasts. The most likely of its forecasts to be realized leads to EPS downgrades of 47% for '10 and 24% by '13, cumulating in $46.7B of Macondo-related costs. Exane says its scenario is harsh, presuming that BP will be proved negligent, stops the leak late and incurs 100% of costs and fines, rather than 65%, in line with its share of the licence . Still, "despite the 'well from hell', risk/reward is now skewed to the upside," says Exane BNP. Outperform rating. Shares +4.3% at 361p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 07, 2010 07:45 ET (11:45 GMT)