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Investing.com - Freedom Broker downgraded Shell Plc. (NYSE:SHEL) from Buy to Hold while maintaining its price target of $78.00. According to InvestingPro data, Shell maintains a "GOOD" financial health score of 2.61, with analysts generally maintaining a bullish consensus despite recent earnings revisions downward.
The European oil and gas giant reported second-quarter adjusted EPS that exceeded consensus estimates, despite showing declines both year-over-year and quarter-over-quarter. The company’s stock has delivered a solid 17.41% return year-to-date, while maintaining its impressive 21-year streak of consistent dividend payments.
Freedom Broker cited increased production from OPEC+ nations as a key factor likely to pressure Shell’s performance in the coming months.
The research firm also pointed to potential adverse effects on global trade resulting from new import tariffs implemented in the United States as an additional challenge for the company.
In its analysis, Freedom Broker suggested that more favorable buying opportunities for Shell securities might emerge in early fall, influencing its decision to downgrade the stock while maintaining the price target.
In other recent news, Shell PLC (LON:SHEL) reported its second-quarter 2025 earnings, showcasing a mixed financial performance. The company’s earnings per share (EPS) came in at $0.72, which fell short of the anticipated $1.32, representing a notable decline of 45.45%. Despite this, Shell’s revenue reached $65.41 billion, surpassing the forecast of $62.03 billion by 5.45%. This mixed result highlights the challenges and opportunities the company is navigating. Additionally, there were no significant updates on mergers or acquisitions involving Shell during this period. Analyst firms have yet to provide new ratings or updates following these earnings results. Investors will likely be interested in how Shell addresses the disparity between its earnings and revenue performance. These developments are crucial for stakeholders tracking the company’s financial health and strategic direction.
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