Shell: becomes one of Credit Suisse's best picks.
(CercleFinance.com) - Although the price of oil is depressed, this morning Credit Suisse has confirmed its "outperform" rating on Royal Dutch Shell shares.
Even better, analysts have put the stock on their list of best picks in Europe, with a target price of 2,500 pence.
According to their research report, the break-even point of the Anglo-Dutch oil giant is expected to improve by about ten dollars per barrel compared to the targets for 2019/2021 set by management. "instead of being 'fit for the fifties', RDS could be 'fit for the forties'," the report says.
Indeed, with the acquisition of BG Group, Shell has repositioned itself - down - on the cost curve of deposits. The "new Shell" is also less capital intensive, Credit Suisse says. This enables it to "prioritise" its investments and reduce the risk associated with the dividend.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Even better, analysts have put the stock on their list of best picks in Europe, with a target price of 2,500 pence.
According to their research report, the break-even point of the Anglo-Dutch oil giant is expected to improve by about ten dollars per barrel compared to the targets for 2019/2021 set by management. "instead of being 'fit for the fifties', RDS could be 'fit for the forties'," the report says.
Indeed, with the acquisition of BG Group, Shell has repositioned itself - down - on the cost curve of deposits. The "new Shell" is also less capital intensive, Credit Suisse says. This enables it to "prioritise" its investments and reduce the risk associated with the dividend.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.