BP Plc (BP)

[Timothy Smith]

BP (BP -0.9%) is rated a Buy at Canaccord, as the firm says its sector leading free cash flow generation forecast for the next few years and share prices at five-year lows make it an attractive investment.

The 2010 Gulf spill triggered a restructuring and simplification of BP's business well in advance of peers that responded after the crude price fall,” but the stock valuation does not yet reflect the transformation, Canaccord says.

"If BP delivers the FCF generation we expect, the market will draw confidence in the dividend sustainability and re-rate the shares," the firm writes.