Shell: still Credit Suisse's favourite 'super-major'.
(CercleFinance.com) - Credit Suisse has confirmed its preference for Royal Dutch Shell amongst the "super-majors" in a sector report on oil companies.
It therefore maintains it "outperform" rating on the Shell 'A' share, along with a target price of 2,500 pence and the stock's status as the broker's best pick (“focus list stock”).
Analysts note that Shell has managed to report three robust quarters in a row, exceeding both the consensus, as well as the performance of the group's closest peer, the US giant ExxonMobil. Regarding interim results, the broker says that it will be interesting to see whether the company is able to maintain this pace in the second quarter of 2017.
Credit Suisse adds that the merger with BG Group has repositioned Shell down the cost curve of deposits. The new group is also exposed to more diversified assets, both in terms of timing and profitability.
Regarding liquefied natural gas (LNG), Shell has built a position that is considered as superior to those of its peers.
Credit Suisse finally says that in the worst-case scenario, it has a target price of 2,040 pence, which is more or less the share's current price. In the best-case scenario, it has a target price of 3,065 pence.
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.
It therefore maintains it "outperform" rating on the Shell 'A' share, along with a target price of 2,500 pence and the stock's status as the broker's best pick (“focus list stock”).
Analysts note that Shell has managed to report three robust quarters in a row, exceeding both the consensus, as well as the performance of the group's closest peer, the US giant ExxonMobil. Regarding interim results, the broker says that it will be interesting to see whether the company is able to maintain this pace in the second quarter of 2017.
Credit Suisse adds that the merger with BG Group has repositioned Shell down the cost curve of deposits. The new group is also exposed to more diversified assets, both in terms of timing and profitability.
Regarding liquefied natural gas (LNG), Shell has built a position that is considered as superior to those of its peers.
Credit Suisse finally says that in the worst-case scenario, it has a target price of 2,040 pence, which is more or less the share's current price. In the best-case scenario, it has a target price of 3,065 pence.
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.