Pitching a new target price of £26.75, up from £25.50, the bank sees some 5% upside whereas the BP target moves to 550p, from 525p, which also sees around 5% upside to the current price.
UBS increased its forecasts for oil prices for the remainder of 2017, 2018 and 2019 to account for better expectations supported by the extension of production caps for OPEC and certain non-OPEC members.
“Although we increasingly see more upside than downside risk to our scenario, one could argue we have come a long way fast,” UBS analyst Jon Rigby said in a note.
“In our central scenario there is little implied macro upside and we believe the shareholder return will be delivered by the bottom up.
“After 3 years of very significant re-adjustment to the new market conditions we would argue we have reached the end of the beginning – companies now have to successfully operate and generate financial returns in the existing environment.”