DBS analyst Suvro Sarkar maintained a Buy rating on Shell (UK) (SHEL – Research Report) today and set a price target of £32.00.
Suvro Sarkar has given his Buy rating due to a combination of factors that highlight Shell’s strategic positioning and financial performance. The company has committed to enhancing shareholder distributions to 40-50% of cash flow from operations, demonstrating a strong focus on returning value to investors. Additionally, Shell has set ambitious structural cost reduction targets, aiming to cut costs by USD5-7 billion by 2028, which is expected to bolster profitability.
Moreover, Shell’s robust earnings potential is supported by its leadership in decarbonization efforts, with plans to significantly reduce emissions by 2030 and achieve net-zero by 2050. In the short term, the company’s Integrated Gas and Upstream segments are anticipated to drive revenue growth, benefiting from favorable market conditions and strategic production initiatives. The company’s disciplined approach to capital expenditure and its commitment to high-return projects further reinforce its strong market position, making it an attractive investment opportunity.
In another report released on March 26, Bernstein also maintained a Buy rating on the stock with a £36.00 price target.