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Investing.com - Piper Sandler raised its price target on Shell Plc. (NYSE:SHEL) to $87.00 from $82.00 on Wednesday, while maintaining an Overweight rating on the stock. The energy giant, currently trading near its 52-week high of $75.08, has demonstrated strong market performance with a 28% return over the past six months. According to InvestingPro analysis, Shell appears undervalued based on its Fair Value metrics.
The adjustment follows Shell’s third-quarter Trading Statement, which Piper Sandler described as "a clear positive" that addresses concerns from second-quarter headwinds with stronger-than-expected results.
Shell reported improved performance in both underlying operations and trading, with LNG and Upstream volume guidance at the higher end of previous estimates and significantly higher trading performance.
Piper Sandler revised its estimates higher across multiple segments including Integrated Gas, Upstream, and Chemicals and Products. The firm now forecasts third-quarter earnings per share of $1.75 and EBITDA of $14,673 million, up from previous estimates of $1.49 and $13,837 million, respectively.
The investment firm identified Shell as its preferred pick among European integrated oil companies, citing the company’s earnings resilience, capacity for increased shareholder returns, and what it considers an inexpensive valuation.
In other recent news, Shell Plc. has been the focus of several analyst assessments, reflecting a range of perspectives on the company’s financial health and strategic direction. Wolfe Research downgraded Shell from Outperform to Peerperform, expressing concerns about the company’s debt levels and its approach to funding share buybacks. Meanwhile, Piper Sandler reiterated an Overweight rating for Shell, citing improvements in capital allocation and operational execution, with a price target of $82.00. Melius Research initiated coverage on Shell with a Hold rating and a $70.00 price target, noting the company’s diversified operational structure. Additionally, Freedom Broker downgraded Shell from Buy to Hold, maintaining a price target of $78.00, following the company’s second-quarter earnings report that exceeded consensus estimates despite showing declines. These developments highlight the varied analyst opinions on Shell’s financial strategies and market positioning.
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