NEW YORK (TheStreet) -- BP plc (BP) shares were upgraded to "buy" from "hold" by Canaccord Genuity on Monday.
The firm raised their price target to GBX 530p ($8.87) from GBX 470p ($7.86) --London Stock Exchange.
BP plc shares are down 0-0.6% to $47.15 in early market trading Monday on the New York Stock Exchange.
Must Read: Warren Buffett's 10 Favorite Growth Stocks
Canaccord believes that the market is putting too much weight into the litigation surrounding the 2010 Deepwater Horizon oil spill --referred to as Macondo in the note.
"A compelling valuation argument is building in favor of BP based on the free cash flow generation potential," said Canaccord. "In addition, Macondo pre-tax cash flows have slowed dramatically in the last year and we believe that with BP taking a tougher line in the US courts these cash out flows are likely to remain at much reduced levels while BP fights its case."
Separately, TheStreet Ratings team rates BP PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BP PLC (BP) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."