Equities
Berenberg Lifts Shell EPS Forecasts Amid Increasing Growth Visibility
Berenberg adjusted its forecasts for Shell (SHEL.L, SHELL.AS) after the British oil and gas giant's better-than-expected second-quarter results, noting that the valuation remains "attractive.""There is increasing visibility on future growth, with the ARC Resources acquisition due to complete in Q3. Shell is also looking to push ahead with the second phase of LNG Canada by the end of the year, and is aiming to ramp up the Loran-Manatee natural gas project to drive capacity higher at Atlantic LNG. Within oil, the large Bonga South West-Aparo (BSWA) project is targeted for a 2027 final investment decision (FID), and the company has also made some promising discoveries, including in Namibia," analysts said in a note published Monday. "These projects could start to push reserves higher, providing increased confidence in the medium-term growth outlook."As such, the adjusted EPS estimates for 2026 and 2027 were lifted by 8.4% and 3.2%, while that for 2028 was raised by 2.2%.The research firm also sees upside potential to Shell's dividend or buyback if the market environment continues to be strong in the second half, with the company's current run rate of payout sitting "well below" its guided range of 40% to 50%.The price targets of 40 pounds sterling and 46 euros, respectively, for its for London-listed and Amsterdam-listed shares were left unchanged, as was the stock's buy rating.
$SHEL.L$SHELL.AS