Shell's Upstream Success Balances Downstream Challenges In Q4, Analyst Reaffirms Potential Upside
Portfolio Pulse from Nabaparna Bhattacharya
Piper Sandler analyst Ryan M. Todd reaffirmed an Overweight rating on Shell PLC (NYSE:SHEL) with a price target of $75, despite Q4 revenue missing consensus. The quarter saw strong upstream performance offset by downstream and renewables weakness. Shell reported a Q4 revenue of $78.73 billion, missing the $84.71 billion consensus, but adjusted earnings per ADS were $2.22, above the $0.97 consensus. The company also announced a 4% annual dividend increase and a $3.5 billion buyback program.

February 02, 2024 | 6:58 pm
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Shell PLC reported a mixed Q4 with strong upstream performance but missed revenue expectations. The company announced a 4% dividend increase and a $3.5 billion buyback program.
Despite missing revenue expectations, Shell's strong upstream performance and the announcement of a dividend increase and significant buyback program are likely to be viewed positively by investors. The reaffirmation of an Overweight rating by a Piper Sandler analyst with a price target significantly above the current trading price suggests potential upside, supporting a positive short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100