Shell upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Martijn Rats upgraded Shell (SHEL) to Overweight from Equal Weight with a price target of $79.80, up from $66.50, as part of a broader research note previewing 2025 in the Energy sector. Oil & gas have mixed prospects in 2025, with Gas markets looking robust, but the oil market seen as well supplied, and downstream margins likely remain under pressure, the analyst tells investors in a research note. Morgan Stanley adds that while it still foresees minor downwards pressure on consensus earnings estimates, after sharp declines, the firm believes that earnings downgrade cycle is nearing completion. For Shell, the firm is positive on the company’s “strong” free cash flow due to low capital expenditures and “steady” balance sheet de-gearing.