Shell: share suffers from a broker downgrade
(CercleFinance.com) - The share of the Anglo-Dutch oil company Shell is dipping slightly on Wednesday after Barclays downgraded it to "underweight" (vs.
"equal weight" previously).
On Euronext Amsteram, shortly after lunch the Shell B share was pretty flat, while the European oil and gas sector index, the Euro STOXX Oil & Gas, was up 0.3%.
"Shell has the potential to deliver significant FCF long term, yet screens as expensive relative to its near-term industrial performance," Barclays analysts believe.
"A strategy presentation in February 2021 may well act as a catalyst but is still five months away, and we see limited momentum until then," they add.
Barclays, which is maintaining its target price of 15 euros, says it currently prefers another UK stock in the oil sector - BP.
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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.
"equal weight" previously).
On Euronext Amsteram, shortly after lunch the Shell B share was pretty flat, while the European oil and gas sector index, the Euro STOXX Oil & Gas, was up 0.3%.
"Shell has the potential to deliver significant FCF long term, yet screens as expensive relative to its near-term industrial performance," Barclays analysts believe.
"A strategy presentation in February 2021 may well act as a catalyst but is still five months away, and we see limited momentum until then," they add.
Barclays, which is maintaining its target price of 15 euros, says it currently prefers another UK stock in the oil sector - BP.
Copyright (c) 2020 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.