Broker snap: A year of transition for BP

While BP still remains in transition mode in 2011, Credit Suisse says the shares continue to offer good valuation upside despite the uncertainty surrounding its Macondo well liabilities.The oil giant gave its first strategy update since the oil spill in April, in which it unveiled a "solid strategy of upstream volume growth, net asset value (NAV) accretion through active portfolio management, and refining and marketing repositioning with the sale of two US refineries," says analyst Kim Fustier.Despite trimming 2011-13 earnings per share forecasts by 3% to account for lower production guidance, Fustier says "BP's shares continue to offer good valuation upside both on NAV and multiples.""However, uncertainty around Macondo liabilities will overhang the shares for another 12 months in our view - we do not expect a ruling on gross negligence before the second half of 2011 at best."BP is given an 'outperform' rating and target price of 585p.