In a report released today, Jason Gabelman from TD Cowen maintained a Buy rating on Shell, with a price target of $78.00.
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Jason Gabelman has given his Buy rating due to a combination of factors that highlight Shell’s financial resilience and strategic positioning. The company reported better-than-expected results in a volatile quarter, which has supported its equity. Despite a free cash flow shortfall in covering distributions, Shell’s robust balance sheet is expected to sustain its buyback pace, providing a significant distribution yield.
Additionally, Shell’s management has reiterated its commitment to efficiently allocate capital between shareholder returns, balance sheet strengthening, and acquisitions. The company’s outlook on gas trading entering a ‘new normal’ with reduced volatility, along with its strategic moves in crude trading, positions it well for future growth. These elements, combined with an increase in the price target due to higher earnings forecasts, underpin Gabelman’s positive outlook on Shell’s stock.
In another report released on August 1, Scotiabank also maintained a Buy rating on the stock with a $80.00 price target.