Shell Buy Rating Reaffirmed as ARC Resources Deal Backs LNG Growth; Price Target Held at $44

In a report released today, Mark Wilson from Jefferies maintained a Buy rating on Shell (UK), with a price target of £44.00.

Mark Wilson has given his Buy rating due to a combination of factors tied to Shell’s strategic expansion and valuation discipline. He highlights that the planned acquisition of ARC Resources, while already anticipated by the market, should enhance Shell’s production growth profile and secure competitive gas feedstock for its Canadian LNG operations at an acquisition price he views as reasonable.

Wilson notes that ARC brings substantial scale, with meaningful daily production and sizeable proved plus probable reserves acquired at a cost that appears attractive on an EV‑per‑barrel basis, supporting long‑term LNG growth. He also underscores that Shell is funding the deal with a balanced mix of cash and shares, keeps his price target unchanged at $44, and expects management’s upcoming Q&A to offer further clarity, reinforcing his conviction in the Buy rating.

Wilson covers the Energy sector, focusing on stocks such as TotalEnergies SE, Shell (UK), and BP p.l.c.. According to TipRanks, Wilson has an average return of 6.8% and a 57.09% success rate on recommended stocks.

In another report released on April 21, J.P. Morgan also maintained a Buy rating on the stock with a £39.00 price target.