Analyst Christopher Kuplent of Bank of America Securities maintained a Buy rating on Shell (UK) (SHEL – Research Report), with a price target of p3,300.00.
Christopher Kuplent’s rating is based on Shell’s strategic financial framework and its ability to deliver strong cash returns. Shell’s cash returns are expected to break even at approximately $65 per barrel of Brent oil, which is notably lower than its European counterparts, indicating its resilience and efficient cost management.
Additionally, Shell’s financial strategy includes a capital expenditure budget that is below consensus expectations and a cash flow from operations payout policy that suggests robust share buybacks. The company’s free cash flow per share is projected to grow significantly, supporting a sustained cash return yield of over 10% even at a base oil price scenario. These factors contribute to the positive outlook and justify the Buy rating.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a £33.00 price target.