Shares of BPCL surge over 5% in trade, also being the top Nifty gainer in the morning trade following a positive upgrade from Jefferies. Jefferies has upgraded the stock to a Buy rating from an Underperform rating earlier, also raising its price target for the stock to Rs 890 against Rs 415 earlier. The target price of Rs 890 translates into a 36% upside in the BPCL stock price from yesterday’s close of Rs 652.
Jefferies believes that BPCL offers the highest margin of safety among all other oil marketing companies including HPCL and IOC. They have an Underperform rating on HPCL and a Hold rating on IOC. However, Jefferies believes that rising crude prices and narrowing discounts on Russian crude can be a risk for BPCL.
As of 9:30 AM, shares of BPCL were up 3.8% at Rs 677.60. In the last three months, BPCL share price has delivered returns of 72% and more than 110.8% in the last one year.
