Shell: Berenberg raises price target
(CercleFinance.com) - Berenberg has raised its target price for the Shell share from 31 euros to 33 euros after the oil major reported "strong" cash flow for the third quarter.
Analyst Henry Tarr noted that operating cash flow was "very strong," in relatively stable macro conditions, driven by higher upstream volumes in higher-margin areas, lower taxes and the absence of any negative margin effect in the integrated gas division.
"The strong quarter demonstrates that the company can deliver across all targets, reducing gearing while funding the dividend and the buyback," he said.
"The challenge now will be to maintain this level of delivery over the coming quarters," Tarr added in a research note to clients. He maintains his "hold" rating on the stock.
Separately, the analyst has raised his target price for Royal Dutch Shell "B" shares from 2,800 pence to 2,900 pence.
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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.
Analyst Henry Tarr noted that operating cash flow was "very strong," in relatively stable macro conditions, driven by higher upstream volumes in higher-margin areas, lower taxes and the absence of any negative margin effect in the integrated gas division.
"The strong quarter demonstrates that the company can deliver across all targets, reducing gearing while funding the dividend and the buyback," he said.
"The challenge now will be to maintain this level of delivery over the coming quarters," Tarr added in a research note to clients. He maintains his "hold" rating on the stock.
Separately, the analyst has raised his target price for Royal Dutch Shell "B" shares from 2,800 pence to 2,900 pence.
Copyright (c) 2018 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.