Research
Research Alert: CFRA Maintains Hold Opinion On Shares Of Shell Plc
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target price for Shell to USD93 (from USD84) due to higher earnings forecast and based on a 2026 P/E of 10.2x, which reflects 0.25 standard deviation below its 10-year average of 11.2x, given Shell's large scale of integrated operation with its downstream division being able to partially cushion the impact of potentially lower crude oil prices in 2027. Shell's Q1 2026 adjusted net profit of USD6.9B (+24% Y/Y) was within market expectations but above ours, coming in at 26% of the consensus' 2026 estimates and 38% of our forecast. Hence, we revise upwards our EPS forecasts to USD9.10 (USD6.11) for 2026 and USD8.19 (USD6.29) for 2027 on higher crude oil and gas price assumptions but maintain production estimates. Our rating is maintained at Hold as we expect continued share price consolidation following the recent crude oil price rebound, which benefited from the stock's fairly strong positive correlation to Brent oil prices.
$SHEL