Wells Fargo upgrades BP to overweight with a $57 target

Wells Fargo upgraded BP to Overweight from Equal Weight on October 1, 2026. Analyst Sam Margolin lifted the price target on the stock to $57 from $48, citing accelerating debt reduction and resource development.

Margolin noted that United Kingdom oil majors trade at nearly half the 2027 enterprise value to EBITDA multiple of their United States peers. Historically, that valuation gap has preceded 12 months of outperformance by the British peer group.

Wells Fargo projects BP's financial debt will drop to about $6.2 billion by the end of 2026. The bank expects debt to fall rapidly during the second half of the year, driven by cash flow and proceeds from the sale of Castrol.

Trading performance also supports the outlook. BP has described its oil trading as exceptional or better this year. With dated Brent near $120 a barrel, volatile diesel spreads, and wide gas spreads, the bank expects solid trading momentum to persist. At the same time, Wells Fargo downgraded Exxon Mobil to Equal Weight while keeping its price target at $182.