Shell: it's time to take profit, SG believes.
(CercleFinance.com) - Société Générale (SG) has issued a report on the oil and gas giant Royal Dutch Shell, which yesterday published quarterly results that were better than expected.
That may be the case, but upside potential (now seems) more limited, SG says in its report. As such, it has downgraded its buy rating on the group's B share to "hold," even though the broker has raised its 12-month target price from 2,350 pence to 2,660 pence.
Indeed, Shell has reported quarterly results that exceeded the consensus by 14%. In addition, and taking into account new oil price estimates, analysts have raised their EPS guidance for 2017 to 2019 by over 20%. Note that SG now expects Brent at 56 dollars per barrel in 2018, up from 50 dollars previously.
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.
That may be the case, but upside potential (now seems) more limited, SG says in its report. As such, it has downgraded its buy rating on the group's B share to "hold," even though the broker has raised its 12-month target price from 2,350 pence to 2,660 pence.
Indeed, Shell has reported quarterly results that exceeded the consensus by 14%. In addition, and taking into account new oil price estimates, analysts have raised their EPS guidance for 2017 to 2019 by over 20%. Note that SG now expects Brent at 56 dollars per barrel in 2018, up from 50 dollars previously.
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.