Scotiabank has increased its price target for Shell (SHEL, Financial) from $70 to $80 while maintaining an Outperform rating on the stock. This adjustment is part of the bank's broader update of price targets for U.S. Integrated Oil, Refining, and Large Cap Exploration and Production stocks. The analyst indicated that these updates reflect the firm's ongoing coverage in this sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Shell PLC (SHEL, Financial) is $77.39 with a high estimate of $88.00 and a low estimate of $39.40. The average target implies an upside of 7.04% from the current price of $72.30. More detailed estimate data can be found on the Shell PLC (SHEL) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Shell PLC's (SHEL, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Shell PLC (SHEL, Financial) in one year is $65.23, suggesting a downside of 9.78% from the current price of $72.3. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Shell PLC (SHEL) Summary page.
SHEL Key Business Developments
Release Date: May 02, 2025
- Adjusted Earnings: $5.6 billion, up 52% compared with Q4.
- Cash Flow from Operations: $11.9 billion, excluding working capital.
- Working Capital Outflow: $2.7 billion in Q1.
- Integrated Gas Production: Higher than Q4, despite lower liquefaction volumes due to unplanned outages in Australia.
- Upstream Availability: Above 98% in Norway, Nigeria offshore, and Kazakhstan.
- Share Buyback Program: $3.5 billion announced, expected to complete by Q2 results announcement.
- Net Debt Position: Increased due to lease additions from Pavilion and drawdown from Nigeria onshore divestment loan facilities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Shell PLC (SHEL, Financial) delivered solid financial results in Q1 2025, with adjusted earnings of $5.6 billion, up 52% compared to Q4.
- The company announced a $3.5 billion share buyback program, marking the 14th consecutive quarter of buybacks of $3 billion or more.
- Shell PLC (SHEL) completed significant portfolio repositioning, including the acquisition of Pavilion Energy and divestments in Singapore and Nigeria.
- The company achieved key operational milestones, such as the start of production at the Penguins FPSO in the UK North Sea and Dover in the Gulf of America.
- Shell PLC (SHEL) maintained a strong balance sheet, with a net debt position reflecting strategic lease additions and divestments.
Negative Points
- Liquefaction volumes in Integrated Gas were lower due to unplanned outages in Australia, impacting overall production.
- The low carbon option businesses faced challenges in a difficult macro environment, affecting their performance.
- Chemicals continued to experience low margins, although improvements are expected following the Singapore divestment.
- The macroeconomic environment remains uncertain, posing potential risks to future performance and strategic initiatives.
- Shell PLC (SHEL) saw an increase in net debt due to lease additions and loan drawdowns, although these were planned and strategic.
