This Investor Just Added Fuel To The BP Upgrade: What You Need To Know

BP PLC BP was featured as the call of the day Wednesday on CNBC's "Fast Money Halftime Report."

What Happened: Morgan Stanley analyst Martijn Rats upgraded BP from an Equal-Weight rating to an Overweight rating.

Rats believes the company's risk exposure to Russia is priced in and shares are undervalued at current levels. The Morgan Stanley analyst also highlighted the company's pledge to continually increase its dividend over the next few years.

Why It Matters: On CNBC's "Fast Money Halftime Report" Wednesday, Decatur Capital Management's Degas Wright noted that the company also announced a buyback to go along with its planned dividend increase. 

Furthermore, BP halted operations in Russia and has a solid pipeline of oil-producing properties, he said. 

The most overlooked part of the company may be its planned transition to alternative energy, Wright noted.

"It reduced its outlook for fuel production in 2030, however ... it has a very aggressive transition plan to alternative energies, and it's actually starting to focus on that piece of the business," Wright explained.

The company's fortified transition plan is the main reason Wright remains bullish on the stock from current levels. He noted that he owns BP stock.

BP Price Action: BP has traded between $22.64 and $34.16 over a 52-week period.

The stock was up 3.22% at $30.62 at time of publication.

Photo: courtesy of BP.