Christopher Kuplent, an analyst from Bank of America Securities, reiterated the Buy rating on Shell (UK) (SHEL – Research Report). The associated price target was lowered to p3,200.00.
Christopher Kuplent has given his Buy rating due to a combination of factors that highlight Shell’s strong position in the market. One key aspect is Shell’s superior resilience compared to its peers, particularly in challenging market conditions. The company boasts the lowest breakeven oil price at approximately $65 per barrel of Brent, which allows it to cover capital expenditures and maintain a 12% cash return run-rate. Additionally, Shell’s balance sheet is among the strongest in the industry, with gearing expected to remain below 20% by the end of 2024.
Another reason for the Buy rating is Shell’s ability to withstand macroeconomic shocks, as demonstrated by its performance during recent market volatility. Despite a significant drop in oil prices, Shell’s share price decline was on par with its peers, showcasing its resilience. Furthermore, Shell’s first-quarter 2025 trading update indicates that the company’s adjusted net income is more than 7% above consensus estimates, supported by lower upstream depreciation and higher downstream trading results. This financial strength, coupled with ongoing cost-cutting measures, positions Shell for potential upside in equity value.
According to TipRanks, Kuplent is an analyst with an average return of -3.2% and a 43.40% success rate. Kuplent covers the Energy sector, focusing on stocks such as BP, Shell, and Equinor ASA.
In another report released today, UBS also maintained a Buy rating on the stock with a p3,150.00 price target.