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Research Alert: CFRA Lowers Opinion On Shares Of Shell Plc To Hold From Buy
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Research Alert: CFRA Lowers Opinion On Shares Of Shell Plc To Hold From Buy
May 26, 2025 12:09 AM

06:25 AM EDT, 05/02/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target price for Shell to USD59 (from USD83) based on a 2025 P/E of 9.2x, which reflects 0.5 standard deviation below its 10-year average of 11.6x. Shell's Q1 2025 adjusted earnings declined 28% Y/Y to USD5.6 billion, which in our view, came in below expectations at 28%-32% of our and 2025 consensus estimate given expectations for lower crude oil prices and production over the subsequent quarters. We gather that the lower Y/Y earnings are due to weaker trading and optimization results in the Integrated Gas segment and continued challenges in the Chemicals & Products division. Our EPS forecasts have been reduced to USD6.40 (from USD8.80) for 2025 and USD6.20 (from USD9.00) for 2026 on lower crude oil and margin assumptions. Our 2026 EPS forecast is now 19% below consensus. We lower our recommendation to Hold (from Buy) given Shell's fairly-strong correlation to crude oil prices against the backdrop of lower Brent oil price expectations this year.

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