MARKET TALK: Royal Bank of Scotland Upgrades BP To Buy

6th Jul 2010 07:49

0649 GMT [Dow Jones] Royal Bank of Scotland upgrades BP (BP.LN) to buy from hold, but cuts its price target at 455p from 595p. Says a decline in BP's value of $60B relative to closest peers since the Macondo oil spill blowout has created a favorable risk/reward balance. Expects the first relief well to intersect the Macondo bore by mid-July, which will be a turning point for BP's share price. "Stopping the flow of oil will cap the physical volume of the spill, reduce the daily costs being incurred, cool the political temperature and, if BP's share price remains excessively depressed, it could trigger credible merger speculation," adds RBS. Shares closed at 333p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 06, 2010 02:49 ET (06:49 GMT)