TD Cowen analyst Jason Gabelman reiterated a Buy rating on Shell (UK) (SHEL – Research Report) today and set a price target of p3,075.00.
Jason Gabelman has given his Buy rating due to a combination of factors that position Shell (UK) favorably among its European peers. The company is well-placed to maintain attractive shareholder distributions even if the market experiences lower pricing environments. This confidence is bolstered by Shell’s expected reduction in capital expenditure and an increase in cash flow from major projects that are now operational.
Shell’s financial outlook is further supported by its strategic management of capital expenditures, which are projected to decrease as significant projects like Monaca Chemicals and LNG Canada come online. These projects, which have required substantial investment, are anticipated to enhance free cash flow by $4 billion from 2023 to 2026. Additionally, Shell’s robust integrated gas business is expected to mitigate the impacts of declining commodity prices, maintaining stable earnings through the decade. These elements collectively underpin Gabelman’s positive outlook on Shell’s stock.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a £36.00 price target.