Shell FY2027 Earnings Forecast Increased by Erste Group Bank

Key Points

• Erste Group Bank raised Shell’s FY2027 EPS forecast to $10.20 from $9.60 and maintained a “Buy” rating, though the estimate remains below the $11.28 consensus.
• Shell recently exceeded quarterly expectations, reporting $3.52 EPS versus $3.23 expected and revenue of $94.66 billion versus an $86.22 billion estimate.
• Potential catalysts include stronger refining margins and expansion of Shell’s Canadian upstream portfolio, while proposed Australian gas-market regulations pose a risk to returns.

Shell PLC Unsponsored ADR (NYSE:SHEL - Free Report) - Equities researchers at Erste Group Bank lifted their FY2027 earnings per share (EPS) estimates for Shell in a note issued to investors on Thursday, October 8th. Erste Group Bank analyst H. Engel now forecasts that the energy company will earn $10.20 per share for the year, up from their prior estimate of $9.60. Erste Group Bank has a "Buy" rating on the stock. The consensus estimate for Shell's current full-year earnings is $11.28 per share.

A number of other research firms have also recently weighed in on SHEL. Wall Street Zen upgraded Shell from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 8th. Morgan Stanley set a $101.30 price objective on shares of Shell and gave the company an "overweight" rating in a report on Thursday, September 3rd. Mizuho set a $103.00 price objective on shares of Shell in a report on Monday. Wells Fargo & Company increased their target price on shares of Shell from $100.00 to $105.00 and gave the stock an "equal weight" rating in a research note on Friday, July 31st. Finally, Weiss Ratings upgraded shares of Shell from a "buy (b)" rating to a "buy (a-)" rating in a research report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $106.63.

Shell Stock Performance

Shares of Shell stock opened at $101.59 on Tuesday. Shell has a 52 week low of $68.63 and a 52 week high of $102.47. The business's fifty day simple moving average is $93.90 and its 200-day simple moving average is $88.90. The firm has a market cap of $284.80 billion, a PE ratio of 11.21, a price-to-earnings-growth ratio of 0.87 and a beta of 0.10. The company has a quick ratio of 1.12, a current ratio of 1.43 and a debt-to-equity ratio of 0.36.

Shell (NYSE:SHEL - Get Free Report) last issued its quarterly earnings data on Friday, July 31st. The energy company reported $3.52 earnings per share for the quarter, topping the consensus estimate of $3.23 by $0.29. Shell had a return on equity of 14.34% and a net margin of 8.55%. The company had revenue of $94.66 billion during the quarter, compared to analyst estimates of $86.22 billion.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SHEL. Continuum Advisory LLC purchased a new stake in shares of Shell during the second quarter worth approximately $34,000. Nalls Sherbakoff Group LLC acquired a new stake in Shell in the fourth quarter valued at approximately $36,000. Kilter Group LLC lifted its stake in Shell by 83.1% in the second quarter. Kilter Group LLC now owns 498 shares of the energy company's stock worth $39,000 after acquiring an additional 226 shares during the last quarter. Allied Private Wealth LLC purchased a new position in Shell in the second quarter worth approximately $43,000. Finally, Retirement Wealth Solutions LLC grew its holdings in Shell by 57.8% during the 3rd quarter. Retirement Wealth Solutions LLC now owns 478 shares of the energy company's stock worth $45,000 after acquiring an additional 175 shares in the last quarter. 28.60% of the stock is currently owned by institutional investors and hedge funds.

Key Shell News

Here are the key news stories impacting Shell this week:

• Positive Sentiment: Refining margins point to a potentially strong quarter. Shell indicated that its refining margin could rise to approximately $42 per barrel, a substantial improvement that may boost near-term earnings and cash flow. Shell says refining margin will jump to $42 a barrel
• Positive Sentiment: Analyst raises Shell’s FY2027 earnings forecast. Erste Group Bank lifted its estimate to $10.20 per share from $9.60 and maintained a “Buy” rating. Although the new forecast remains below the broader current-year consensus of $11.28, the upgrade supports the improving earnings outlook.
• Positive Sentiment: Shell is expanding its Canadian upstream portfolio. The company will acquire a 30% stake in Equinor’s proposed Bay du Nord oil project, adding a long-term production opportunity while emphasizing capital discipline. Shell and Equinor deepen Canadian ties
• Positive Sentiment: Fuel-price increases may support downstream revenue. Shell matched Caltex’s three-cent petrol price increase in Singapore, potentially helping preserve local marketing margins. Shell matches Caltex petrol price hike
• Neutral Sentiment: Shell and Singapore LNG delivered their first bio-LNG volumes, supporting the company’s lower-carbon fuels strategy, though the immediate earnings impact is likely limited. Shell and Singapore LNG ship first bio-LNG volumes
• Negative Sentiment: Regulatory risk is increasing in Australia. Shell criticized Canberra’s proposed gas-reserve policy, warning it could distort supply incentives and cause market failure. Potential restrictions on LNG exports or mandatory domestic supply could pressure returns from Australian gas operations. Shell calls Australia’s gas reserve plan a sledgehammer

About Shell

Shell plc is a global energy company headquartered in London, United Kingdom. Its operations span the exploration, production, processing, transportation and marketing of oil and natural gas, with an increasing focus on liquefied natural gas (LNG), lower-carbon energy and energy-transition solutions.

The company supplies fuels, lubricants, chemicals and other energy products to businesses, transportation customers and consumers. Shell also operates a network of retail service stations and provides charging services for electric vehicles, renewable power and related energy solutions.

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