BP Downgraded to "Hold" at Argus Research (BP)

Oil giant BP plc ( BP ) was downgraded on Monday by analysts at Argus Research on Monday, who cited uncertainty surrounding the disastrous Gulf of Mexico oil spill.

The analyst cut its rating on BP to "Hold" from "Buy," noting that the cause of the accident remains unsolved. Argus also cited the still-unknown ultimate cost of the damage, which could surge to several billion dollars.

BP shares fell $1.40, or -2.7%, in premarket trading Monday.

The Bottom Line

We recently removed shares of BP from our "recommended" list. The company has a 6.44% dividend yield, based on Friday's closing stock price of $52.15. We are concerned the oil rig disaster in the Gulf could put a damper on the company's current dividend payout. The stock has technical support in the $45-$48 price area. If the shares are able to stabilize, we see near-term overhead resistance in the $57 price area. We would remain on the sidelines for now.

BP plc ( BP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.