BP stock has surged 5% this week after announcing its biggest oil find in 25 years and a restructuring plan. CEO Auchincloss promises better returns for investors. Analysts question if BP can catch up to rival Shell. Morningstar analyst Good remains cautious, favoring Shell over BP. Fair value estimate for BP stock remains at 445p.

BP plans to cut 6,200 jobs and increase fossil fuel output to 2.5m barrels/day by 2030. This shift comes after BP pledged to cut back fossil fuel production in 2020. Amid shareholder pressure, US activist investor Elliott Management demands further cost cuts. BP also plans to sell its US wind farm business.

Investors are skeptical about BP’s ability to deliver on its restructuring plan, despite recent stock gains. CEO Auchincloss aims to increase oil and gas production while cutting costs. Shareholder pressure from Elliott Management adds to the uncertainty surrounding BP’s turnaround strategy. Morningstar maintains a cautious stance on BP stock.

Read more at Morningstar: BP Shares Surge After Oil Find, Latest Strategic Reset