HSBC upgraded BP PLC to Buy from Hold on Friday and raised its price target for the energy company. The bank raised its 2026 Brent crude oil price assumption to $90 per barrel from $80.
HSBC expects the stronger oil-price outlook to boost BP’s cash flow and strengthen its balance sheet. Analysts said this would ease pressure on the company to sell assets to manage liabilities and reduce debt.
The upgrade reflects a stronger outlook for BP’s ability to reduce debt without relying heavily on asset sales.