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Investing.com - Piper Sandler has reiterated its Overweight rating on Shell Plc. (NYSE:SHEL) with a price target of $82.00. Currently trading at $72.63, Shell appears undervalued according to InvestingPro analysis, with the stock showing impressive YTD returns of ~20%.
The research firm hosted a series of investor meetings with Shell in California last week, noting that the company’s message continues to resonate with investors despite current energy sector sentiment ranging from "modest bearishness to apathetic."
Discussions during these meetings primarily centered on the outlook for global LNG markets and opportunities for Shell to grow its upstream resource base.
Piper Sandler highlighted Shell’s "aggressive discipline" in capital allocation under current management, particularly focusing on areas of competitive advantage such as deepwater operations and LNG.
The firm believes Shell has established itself as "a leader in FCF generation" with underappreciated capacity to increase distributions across various commodity price environments.
In other recent news, Shell Plc reported its second-quarter 2025 earnings, revealing a mixed financial performance. The company announced earnings per share (EPS) of $0.72, which fell short of the expected $1.32, marking a 45.45% decline. However, revenue for the quarter reached $65.41 billion, surpassing the forecast of $62.03 billion by 5.45%. In terms of analyst opinions, Shell’s stock received a Hold rating from Melius Research with a price target of $70, highlighting the company’s diversified operational structure. Additionally, Freedom Broker downgraded Shell from Buy to Hold, maintaining a price target of $78, due to global pressures. Despite the downgrade, Shell’s second-quarter adjusted EPS exceeded consensus estimates, despite showing declines both year-over-year and quarter-over-quarter. These developments reflect the ongoing challenges and opportunities facing Shell in the current economic environment.
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