Mizuho Starts Shell Plc. (SHEL) at Neutral

Mizuho analyst Nitin Kumar initiates coverage on Shell Plc. (NYSE: SHEL) with a Neutral rating and a price target of $98.00.

The analyst comments "We are initiating coverage of Shell Plc (SHEL) with a Neutral Rating and $98/ADS NAV-based price target. Shell trades at a discount to peers on EV-to-EBITDA and FCFto-EV multiples, driven in our opinion by the enhanced margins from its marketing and supply organization that complement hard assets in both upstream and downstream. Management is ahead of schedule on planned cost reductions while focusing on highgrading the returns profile of both current and future investments, enabling the highest total cash return amongst peers. On the other hand, lower reserve life, challenged margins in refining/chemicals, and potential regulatory/litigation risk are key headwinds. The $16.7bn ARC Resources acquisition was one of the largest in company history, with potential integration risk given the difference in operating models. We see a balanced riskreward relative to peers and prefer to be on the sidelines for now."

For an analyst ratings summary and ratings history on Shell Plc. click here. For more ratings news on Shell Plc. click here.

Shares of Shell Plc. closed at $87.32 yesterday.

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