MARKET TALK: BP Not Out Of The Woods Yet -S&P Equity Research

1133 GMT [Dow Jones] While BP (BP.LN) is a fundamentally strong company that can handle the effect of the oil leak in the Gulf of Mexico, it is not out of the woods yet, says S&P Equity Research. It notes news that BP has temporarily stopped the oil flow from the Gulf of Mexico well, but says the well has to be capped, civil liabilities are yet to be determined and US politics could undermine BP's US asset position. "Thus, we think the shares will continue to trade below our estimate of their underlying value for some time." Keeps the stock rated hold, with a 640p price target. Shares +4% at 418p.(michele.maatouk@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 16, 2010 07:33 ET (11:33 GMT)