Shell plc (LON:SHEL) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analysts give Shell a “Moderate Buy” consensus: Six analysts rate the stock a buy and six recommend holding it, with an average 12-month target price of GBX 3,775.
• LNG Canada expansion advances: Shell approved the final investment decision for the project’s second phase and selected contractors, potentially increasing capacity to about 28 million tonnes annually and supporting long-term LNG growth.
• Share buybacks continue: Shell purchased nearly 2 million shares for cancellation, which could boost per-share earnings and reflects confidence in its cash generation; however, UBS maintained a neutral rating.

Shares of Shell plc (LON:SHEL - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the twelve analysts that are presently covering the company, Marketbeat Ratings reports. Six research analysts have rated the stock with a hold rating and six have issued a buy rating on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is GBX 3,775.

SHEL has been the topic of several recent research reports. JPMorgan Chase & Co. reduced their target price on shares of Shell from GBX 3,900 to GBX 3,600 and set an "overweight" rating on the stock in a report on Friday, July 3rd. Jefferies Financial Group reiterated a "buy" rating and issued a GBX 4,500 price target on shares of Shell in a report on Tuesday, August 25th. Berenberg Bank reissued a "buy" rating and issued a GBX 4,000 price objective on shares of Shell in a research report on Monday, August 3rd. Royal Bank Of Canada restated a "neutral" rating on shares of Shell in a research note on Thursday, September 24th. Finally, UBS Group reaffirmed a "neutral" rating on shares of Shell in a research report on Friday, September 25th.

More Shell News

Here are the key news stories impacting Shell this week:

• Positive Sentiment: Shell approved the final investment decision for the second phase of LNG Canada, which is expected to expand the facility’s capacity to approximately 28 million tonnes per annum. The expansion strengthens Shell’s position in the global LNG market and could provide long-term production and cash-flow growth. Shell advances LNG Canada phase two project with FID
• Positive Sentiment: The company selected contractors for the second phase of the LNG Canada expansion, indicating that the project is progressing from planning toward execution. The additional LNG capacity could benefit Shell from rising global demand for flexible gas supplies. Shell selects contractors for second phase of LNG Canada expansion
• Positive Sentiment: Shell continued its share-buyback program, purchasing shares for cancellation, including nearly 2 million shares in the latest reported transactions. Buybacks reduce the share count and can increase per-share earnings while signaling management’s confidence in the company’s balance sheet and cash generation. Shell Steps Up Share Buy-Backs
• Neutral Sentiment: Shell increased petrol and diesel prices in a new round of fuel-price adjustments linked to the Middle East conflict. Higher prices may support downstream revenue, but they can also pressure fuel demand and do not necessarily translate into higher refining or retail margins. Shell fuel price increases
• Neutral Sentiment: UBS reiterated a “Neutral” rating on Shell, suggesting limited near-term upside at the current valuation despite the company’s strong cash returns and LNG growth prospects. UBS reiterates Neutral rating

Shell Price Performance

SHEL opened at GBX 3,562.50 on Wednesday. Shell has a 52-week low of GBX 2,553.77 and a 52-week high of GBX 3,758.50. The company has a 50 day moving average of GBX 3,423.25 and a two-hundred day moving average of GBX 3,297.86. The company has a market cap of £203.83 billion, a P/E ratio of 7.88, a P/E/G ratio of 2.50 and a beta of 0.43. The company has a quick ratio of 0.86, a current ratio of 1.43 and a debt-to-equity ratio of 40.42.

Insiders Place Their Bets

In other Shell news, insider Sinead Gorman sold 30,000 shares of the company's stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of GBX 3,369, for a total value of £1,010,700. 0.05% of the stock is currently owned by corporate insiders.

About Shell

Shell is a global group of energy and petrochemical companies. Shell's strategy is to deliver more value with less emissions as we work to become a net-zero emissions business by 2050. As we navigate the energy transition through the next decade, we will leverage our global footprint, the trust in our brand, and our innovation and technology capabilities to be the energy company that customers and countries choose to be their partner. We are positioning Shell to become the investment case and partner of choice through the energy transition.

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