Shell: Berenberg cuts target price, remains a buyer
(CercleFinance.com) - German broker Berenberg said that it is maintining its "buy" rating on Royal Dutch Shell shares, while cutting its target price for the stock from 33.
50 euros to 31.50 euros, after the oil giant reported a "weak" fourth quarter.
The main drivers of the weakness remain macro in nature, the broker pointed out, with weak gas and LNG prices - and low refining and chemical margins, which have persisted into 2020.
To drive increased interest in the stock, investors will need to see an improvement in key macro indicators, the analysts noted.
As such, Berenberg said it sees potential upside in oil prices towards the end of 2020, rolling into 2021.
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