Liability is the key issue for BP
(BP.LN) says Credit Suisse, although the brokerage concedes that getting close to
"zero oil" is an important psychological step. Says there are four
main liability questions that remain unanswered. First, the amount of
compensatory claims; secondly whether gross negligence will be proven; thirdly,
if gross negligence is proven, whether punitive damages apply; and lastly, how
liability will be shared amongst partners. Says its 515p target price offers
20%-26% potential upside. In its "optimist" case, says there is
potential upside to 604p. In the "pessimist" case, BP's share price
embeds gross negligence, 100% of costs and a total liability of $61Bln, pretax.
Has
outperform rating. BP is -3% at 395p.