Shell PLC (LSE:SHEL, NYSE:SHEL) received higher price targets of 4,100p from RBC and UBS, although the brokers retained their respective ‘sector perform’ and ‘neutral’ ratings.
RBC raised its target from 4,000p after incorporating updated commodity price assumptions, which also drove increases in its earnings forecasts.
The broker lifted its 2026 earnings per share estimate to $6.71 from $6.17 and its 2027 forecast to $6.84 from $5.05.
Alongside those revisions, RBC incorporated quarterly buybacks of $5 billion through the first half of 2027, following Shell’s increase from $3 billion.
RBC also saw room for a 20% dividend increase, supported by additional acquisition-related cash flow and improvements in Shell’s longer-term production portfolio.
It said that increase could accompany the strategy update in early 2027, when it expects greater attention on the production portfolio beyond 2030.
UBS, meanwhile, raised its target from 3,750p, citing higher buybacks and stronger downstream margin assumptions.
The broker also noted that Shell lowered its 2026 cash capital expenditure guidance by approximately $1 billion to between $23 billion and $25 billion, largely reflecting phasing.
On operating performance, UBS highlighted stronger results across the business and third-quarter cash flow from operations excluding working capital that exceeded consensus by 19%.
Derivative inflows partly supported that cash-flow beat, while net debt fell 5% quarter-on-quarter to $39.7 billion.
Despite that financial strength, UBS questioned the durability of the larger buyback, estimating that maintaining it throughout 2027 would require oil prices of around $80 a barrel.
Its forecasts therefore assume quarterly repurchases ease to $4 billion in the second half of 2027.
Source: www.proactiveinvestors.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
