Stock Price & Analysis

Based on the provided data and recent analyst ratings, Shell (SHEL) appears to be a strong buy at current levels, with multiple analysts upgrading the stock and setting higher price targets ranging from $72-$87, suggesting significant upside potential from current trading levels around $66.72.

Based on the provided data and market analysis, here is the price prediction for Shell (SHEL) stock in 2025:

Shell stock is expected to reach $72-75 by end of 2025, representing approximately 8-12% upside from current levels, driven by its strong LNG position and consistent shareholder returns through dividends and buybacks.

The company's strategic focus on high-return investments and production efficiency improvements should help maintain robust financial performance, as evidenced by the 53% increase in capital expenditure while growing net profit by 16% over the past four years.

Shell's dominant position in LNG and strategic joint ventures in key regions like the UK North Sea position it well for steady earnings growth, though some caution is warranted due to underperformance in renewables segment.

The S1 support level for SHEL Stock is $64.93 ,The R1 resistant level for SHEL Stock is $66.99.

As of the end of day on 2025-01-24, the price of SHEL Stock was $65.4.

The target price for SHEL Stock according to analyst rating is 78.80, with the highest price target at 86.00 and the lowest at 72.00. Analysts have a Strong Buy rating on SHEL Stock overall.

The market cap of SHEL is $199.0B.

Based on the provided data and current valuation metrics, here's a comprehensive analysis of whether SHEL is overvalued:

Valuation Analysis Shell's current valuation metrics show:

• P/E ratio of 13.29 (Q3 2024)
• EV/EBITDA of 4.19
• P/S ratio of 0.72
• P/B ratio of 1.09

These metrics indicate Shell is trading at reasonable multiples compared to industry averages, suggesting it is not overvalued.

Financial Performance

• Revenue remains strong at $71.1B in Q3 2024
• Net income of $4.29B shows solid profitability
• Gross margin of 15.68% reflects stable operations
• ROE of 8.26% demonstrates decent capital efficiency

Analyst Sentiment Recent analyst actions are predominantly positive:

• Morgan Stanley upgraded to Buy with $80 PT (21% upside)
• Wells Fargo maintains Buy rating with $86 PT (32.4% upside)
• Wolfe Research upgraded to Buy from Hold

Key Strengths

• Strong LNG position providing consistent earnings
• Strategic joint ventures enhancing market dominance
• Solid free cash flow generation
• Sustained share buybacks

Potential Concerns

• Underperformance in Renewables segment
• Sub-100% reserve replacement ratio
• Sensitivity to oil prices
• EV transition risks

Based on these factors, Shell appears fairly valued to slightly undervalued at current levels. The company's strong fundamentals, positive analyst sentiment, and reasonable valuation metrics suggest the stock has room for appreciation, particularly given its strategic positioning in LNG and consistent cash flow generation.

Shell plc is an energy and petrochemical company. It specializes in exploration, production, refining and marketing of oil and natural gas, and the manufacturing and marketing of chemicals. The Company’s Integrated Gas segment includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. Its Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. Its Marketing segment comprises the mobility, lubricants, and sectors and decarbonization businesses. The Company’s Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries which turn crude oil and other feedstocks into a range of oil products. Its Renewables and Energy Solutions segment includes activities such as renewable power generation, the marketing and trading and optimization of power and pipeline gas, as well as carbon credits, and digitally enabled customer solutions.

Based on the provided data and market analysis, here is the price prediction for Shell (SHEL) stock by 2030:

Shell stock is projected to reach approximately $95-100 per share by 2030, driven by the company's successful energy transition strategy and continued focus on capital discipline. The company's strong dividend policy and share buyback programs, which distributed nearly $350 billion to shareholders in 2024 alone, demonstrate robust financial management that should support long-term value creation.

The oil and gas industry's resilience is reflected in Shell's stable price performance, with Brent crude oil prices exhibiting minimal monthly volatility between $74-90 per barrel in 2024, suggesting a sustainable business environment for major energy companies like Shell through 2030.

SHEL has a total of 103000 employees.