BP ( BP)

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Raymond James' equity research team says oil giant BP is a "good deal for retail investors" because it offers an attractive 4% dividend yield and is "very cheap" compared with its peers.

"BP, out of all the integrated companies , is the most undervalued," Hudson of Raymond James tells TheStreet. "We think as time goes on, OPEC (Organization of the Petroleum Exporting Countries) spare capacity will shrink and push oil up, she adds, helping to boost BP's profits.

BP, of course, remains under scrutiny in the aftermath of the Gulf of Mexico oil spill -- the legal overhang is part of why the stock is so cheap. The latest in a series of independent reports on the oil spill -- the marine board report from the Coast Guard -- will be released on July 27. Much like the Presidential Commission's oil spill report from January, this will not be a judicial document, though its conclusions could certainly have an impact on BP's legal road ahead, Raymond James' research analysts in a report.

But "we concur with the company's view that this report will echo the January report's central conclusion that the spill had multiple causes and multiple responsible parties," they noted in their client note. "Thus, this report should further bolster the company's defense against any potential attempt by the Justice Department to pursue gross negligence charges."

UK-based BP is one the world's largest private-sector integrated oil and gas companies. It's been rated outperform with a $62 price target by Raymond James.

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