UBS downgrades Shell with shares no longer ‘cheap’

UBS downgraded Shell (SHEL) to Neutral from Buy with a price target of 3,000 GBp, down from 3,200 GBp. The firm no longer views the shares as “cheap” following the 12% rally year-to-date. Shell’s valuation has been “harder to justify” given its resource replenishment challenges over the medium term and “more limited” sales growth, the analyst tells investors in a research note.