TD Cowen analyst Jason Gabelman has maintained their bullish stance on SHEL stock, giving a Buy rating on October 18.
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Jason Gabelman has given his Buy rating due to a combination of factors that highlight Shell’s strong financial positioning and strategic initiatives. Shell’s recent quarterly performance was notably robust, driven by effective trading operations and solid operational results. The company is well-prepared to handle potential downturns in oil prices, thanks to its strong balance sheet and impressive free cash flow and dividend yield, which are among the best in its peer group.
Moreover, Shell’s strategic focus on addressing its future production gap and optimizing its capital employed in chemicals and renewable energy solutions further supports the Buy rating. The company is actively exploring larger inorganic opportunities to fill its production gap beyond 2030, while also making progress in divesting non-performing assets in renewables. These strategic moves, along with the potential earnings contribution from LNG Canada train 2, reinforce the positive outlook for Shell, leading to an increased price target.
Gabelman covers the Energy sector, focusing on stocks such as Chevron, Shell, and Exxon Mobil. According to TipRanks, Gabelman has an average return of 6.2% and a 55.66% success rate on recommended stocks.
In another report released on October 18, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $81.00 price target.