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Research Alert: CFRA Lowers Opinion On Shares Of Shell To Sell From Hold
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Research Alert: CFRA Lowers Opinion On Shares Of Shell To Sell From Hold
Jun 13, 2025 12:52 AM

03:40 AM EDT, 06/13/2025 (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 maintain our 12-month target price for Shell at USD59 based on 2025 P/E of 9.2x, which reflects 0.5 standard deviation below its 10-year average of 11.6x. Our EPS forecasts are maintained at USD6.40 for 2025 and USD6.20 for 2026, which are +3%/-7% to consensus estimates due to lower 2026 crude oil price assumptions. We expect further cuts to 2026 consensus EPS estimates as crude oil price projections continue to be revised lower over the next few months given EIA Short Term Energy Outlook's lower USD59/bbl (from USD61/bbl in the previous month). This could lead to lower earnings and cash flow estimates together with cuts in dividend payouts and yields while Shell may miss its target of operational cash flow distributions of 40-50% for 2025-2026. Our rating on Shell has been lowered to Sell from Hold given its fairly-strong correlation to crude oil prices against the backdrop of lower Brent oil price expectations this year.

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