BP Lifts Price Target to 440 GBp as Etlas JV Targets 1 M Tonne Biofuel Feedstock
Jefferies maintained its Hold rating on BP and lifted its price target to 440 GBp from 420 GBp. BP and Corteva launched the Etlas joint venture to produce crop-based feedstocks targeting 1 million metric tonnes annually by mid-2030s, with initial volumes from 2027, as shares slid 2.01%.
1. Jefferies Maintains Hold Rating and Raises Price Target
On January 7, 2026, Jefferies reaffirmed its Hold rating for BP while increasing the price target to 440 GBp, up from 420 GBp. The brokerage cited stable cash flow generation and disciplined capital allocation as key factors supporting its outlook. Jefferies noted that BP’s upstream breakeven costs remain competitive within the sector and highlighted the company’s commitment to shareholder returns through a 50 percent underlying replacement cost profit payout ratio.
2. BP and Corteva Launch Etlas Joint Venture for Biofuel Feedstocks
BP has formed a 50:50 partnership with Corteva Inc. called Etlas, designed to produce crop-based oils for sustainable aviation fuel and renewable diesel. Etlas aims to supply one million metric tonnes of feedstock annually by the mid-2030s, with initial volume targeted for 2027. The venture leverages Corteva’s advanced seed technology and BP’s global refining and marketing network, potentially yielding over 800,000 tonnes of finished biofuel each year at full scale.
3. Recent Stock Performance and Key Metrics
BP’s shares fell 2.01 percent, a $0.69 decline to $33.67, following news flow during early trading. The intraday range spanned $33.58 to $33.93. Over the past 12 months, the share price reached a high of $37.64 and dipped to $25.22. The company reports a market capitalization of approximately $88.3 billion and average daily trading volume of 12.2 million shares, reflecting sustained investor interest in its energy transition strategy.