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.
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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.