Morgan Stanley upgrades BP and downgrades Eni

Morgan Stanley lifted its rating on BP
BP,
-0.07%
BP,
+0.34%
to overweight from equal weight, while it downgraded Italy’s Eni
ENI,
+0.70%
back to equal weight from overweight. BP was previously held back by its guidance for a decline in oil and gas production, its energy transition strategy that was “diverse” and its exposure to Russia, but now BP has made progress, “leaving a share whose distribution capacity is undervalued,” said analysts led by Martjin Rats. On Eni, its relatively high earnings sensitivity to oil and gas prices, and its spinoff plan for what’s called Plenitude, have now been reflected into the shares. Morgan Stanley lifted its target price on BP and Royal Dutch Shell by 5% each, lifted its target on Equinor by 4%, cut its TotalEnergies target by 5% and cut its Eni target by 6%.