MARKET TALK: Goldman Sachs Raises BP Target Price

28th Jul 2010 07:29

0629 GMT [Dow Jones] Goldman Sachs raises BP (BP.LN) target price to 570p from 540p following 2Q earnings. The company has widened its planned disposals to $25B-$30B worth of assets over the next 18 months from previous plans to dispose of $10B worth over the next 12 months. Goldman says this is encouraging news. "In our view, it will help to release some of the company's SOTP value and allow BP to re-start the dividend payment [although most likely at a reduced rate] with the 4Q results," says Goldman. It adds that investigations about the causes of the spill remain "the key catalyst to determine the total liability for the company." Neutral rating. Shares closed Tuesday at 406p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 28, 2010 02:29 ET (06:29 GMT)