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Wall Street Analysts’ Views on Shell

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Analysts’ ratings for Shell

Of the 11 analysts covering Royal Dutch Shell (RDS.A), nine (82%) recommend “buy” or “strong buy,” and two recommend “hold.” Their mean target price of $79 for Shell implies a 25% gain from the stock’s current price.

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Why do analysts love Shell?

Shell’s financials were robust last year, likely a result of its strategy to reduce costs, sell non-core assets, optimize its capex, and deliver new projects on time and within budget. The company’s earnings increased, total debt fell, and liquidity position improved last year. Its total debt decreased by $9 billion, and its cash flow from operations rose 49% to $53.0 billion. As Shell sticks to its strategy, analysts are likely to remain positive on the company.

Peers’ ratings

Of the analysts covering ExxonMobil (XOM), Chevron (CVX), and BP (BP), 32%, 78%, and 45% recommend “buy,” respectively. Of the analysts covering global integrated companies Total (TOT), YPF (YPF), Petrobras (PBR), and Suncor Energy (SU), 100%, 79%, 43%, and 92% recommend “buy.”

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