Zacks Research Upgrades Shell (NYSE:SHEL) to Strong-Buy

Key Points

• Zacks Research upgraded Shell to a Strong-Buy, adding the stock to its momentum and income lists which could attract institutional and quant flows.
• Corporate catalysts include talks to sell Shell’s South Africa retail fuel network to ADNOC (~$1B), ongoing share buybacks, and reports of a deal to operate the Loran gas field in Venezuela, all of which could support cash generation and future production optionality.
• Analyst sentiment is mixed—consensus is a Moderate Buy (average target $91.55) with three Strong Buy, four Buy and twelve Hold ratings—while the stock trades near $91.36 (52-week high $94.90), has a PE of 15.23, and recently missed quarterly EPS and revenue estimates.

Shell (NYSE:SHEL - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Monday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the stock. Wells Fargo & Company boosted their price target on shares of Shell from $77.00 to $94.00 and gave the stock an "equal weight" rating in a research report on Thursday, April 9th. TD Cowen reduced their price objective on shares of Shell from $112.00 to $110.00 and set a "buy" rating for the company in a research note on Friday, April 10th. Weiss Ratings raised shares of Shell from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 30th. Royal Bank Of Canada lowered shares of Shell from an "outperform" rating to a "sector perform" rating in a research note on Monday, January 26th. Finally, Scotiabank raised shares of Shell to a "strong-buy" rating in a research note on Friday, March 27th. Three analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and twelve have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $91.55.

Shell Price Performance

Shares of Shell stock opened at $91.36 on Monday. The company has a current ratio of 1.30, a quick ratio of 1.03 and a debt-to-equity ratio of 0.38. The company's 50-day moving average price is $86.09 and its two-hundred day moving average price is $78.06. Shell has a 52 week low of $62.58 and a 52 week high of $94.90. The stock has a market cap of $258.72 billion, a PE ratio of 15.23, a price-to-earnings-growth ratio of 0.53 and a beta of 0.10.

Shell (NYSE:SHEL - Get Free Report) last issued its quarterly earnings results on Friday, February 6th. The energy company reported $1.14 EPS for the quarter, missing the consensus estimate of $1.21 by ($0.07). Shell had a return on equity of 10.34% and a net margin of 6.52%.The business had revenue of $64.09 billion during the quarter, compared to the consensus estimate of $65.82 billion. As a group, sell-side analysts anticipate that Shell will post 7.67 EPS for the current fiscal year.

Hedge Funds Weigh In On Shell

A number of large investors have recently made changes to their positions in SHEL. Kohmann Bosshard Financial Services LLC acquired a new position in shares of Shell in the 4th quarter valued at about $26,000. Steigerwald Gordon & Koch Inc. acquired a new position in shares of Shell in the 3rd quarter valued at about $31,000. Grey Fox Wealth Advisors LLC acquired a new position in shares of Shell in the 3rd quarter valued at about $34,000. Zions Bancorporation National Association UT increased its holdings in shares of Shell by 186.7% in the 4th quarter. Zions Bancorporation National Association UT now owns 473 shares of the energy company's stock valued at $35,000 after purchasing an additional 308 shares during the period. Finally, Nalls Sherbakoff Group LLC acquired a new position in shares of Shell in the 4th quarter valued at about $36,000. Institutional investors and hedge funds own 28.60% of the company's stock.

Shell News Roundup

Here are the key news stories impacting Shell this week:

• Positive Sentiment: Advanced talks to sell South Africa retail fuel network to ADNOC (~$1B) — would generate cash, simplify the regional retail portfolio and support capital allocation. Shell in talks with UAE's ADNOC for South Africa fuel outlet sale, Bloomberg News reports
• Positive Sentiment: Ongoing share buybacks — Shell reported purchases of shares for cancellation under its buyback program, which reduces share count and supports EPS. Transaction in Own Shares
• Positive Sentiment: Analyst/quant recognition — Zacks added SHEL to its Strong Buy (Rank #1) momentum and income lists, which can attract institutional/quant flows and retail interest. Best Momentum Stocks to Buy for April 14th
• Positive Sentiment: Agreements in Venezuela — Reports say Shell is set to sign a deal to operate the Loran gas field, adding upstream exposure and future production optionality. Chevron, Shell to sign agreements for oil, gas areas in Venezuela, sources say
• Neutral Sentiment: India LNG push — Shell has ramped LNG supply to India, winning key tenders and boosting volume, but the move tests cash flow and contract resilience (growth vs. margin/counterparty trade-offs). Monitor margins and payment/contract terms. Shell’s India LNG Push Tests Cash Flow And Contract Resilience
• Neutral Sentiment: AGM governance note — Shell will allow a shareholder vote on Follow This climate resolution (company recommends voting against). Governance engagement could create short-term debate but is not an immediate cash-impact event. Shell, in contrast to BP, allows AGM vote on Follow This climate resolution
• Negative Sentiment: Share price weakness vs. market — Headlines noted SHEL shares fell today despite broader market gains; this may reflect profit-taking after a strong multi-month run, short-term positioning or rotation out of energy names. Shell (SHEL) Stock Drops Despite Market Gains: Important Facts to Note

Shell Company Profile

Shell plc NYSE: SHEL is a global integrated energy company that operates across the full oil and gas value chain as well as in developing lower-carbon energy solutions. The company traces its roots to the early 20th century merger of Royal Dutch Petroleum and Shell Transport and Trading, and today it is organized to explore for and produce hydrocarbons, process and refine them, manufacture petrochemicals, and market fuel, lubricants and related products under the Shell brand around the world.

Shell's principal activities include upstream exploration and production of oil and natural gas, integrated gas operations including liquefied natural gas (LNG), and downstream refining, supply and marketing.

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