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Continuing to be a favorite choice.

Shell's equities face a drop due to decreasing oil prices, yet analysts maintain positive sentiments, assigning 'Buy' recommendations.

Remains a preferred choice.
Remains a preferred choice.

Continuing to be a favorite choice.

In the recent trading week, oil prices took a dip, with Brent oil falling by more than six dollars per barrel. However, this downturn has not dampened the spirits of analysts when it comes to Shell, the British-Dutch multinational oil and gas company.

UBS, for instance, maintains a "Buy" recommendation for Shell, with a price target of 3,000 British pence (approximately €34.62). This optimistic stance is shared by Jefferies, which also leaves its "Buy" rating for Shell unchanged with a price target of the same value.

Giacomo Romeo, an analyst at Jefferies, has adjusted his forecasts for major oil companies following the second-quarter results. Despite economic concerns for 2025/26, Romeo expects falling oil prices to put more pressure on companies. However, Shell's stability in dividend payments to shareholders and its solid balance sheet make it a standout choice. Romeo, in fact, continues to see Shell as his "Top Pick."

Michele della Vigna, an analyst at Goldman Sachs, shares similar sentiments. He prefers companies with solid balance sheets to continue providing high cash dividends to shareholders, specifically mentioning Shell. In an uncertain economic environment, della Vigna finds Shell particularly attractive due to its strong and broad position, high reserves, good cost structure, attractive valuation, and a dividend yield of four percent.

The weak performance of oil prices can be attributed to weaker economic data in the US, which fueled demand concerns, and the announcement of another significant increase in supply by OPEC+. Despite these challenges, analysts such as Henri Patricot at UBS see the third quarter as less affected by fluctuations than the second.

The current outlook for Shell shares as of the third quarter of 2020 cannot be precisely determined from recent data, as available search results primarily cover Shell's financial performance and analyst recommendations from 2024-2025, not specifically Q3 2020. However, as of mid-2025, Shell reported solid Q2 results with earnings of $3.6 billion and maintained its dividend, alongside a $3.5 billion share repurchase program. Analyst consensus as of August 2025 shows a generally positive outlook with most recommendations as "Buy" or "Outperform" (15 out of 22), no "Sell" ratings, and a median 12-month price target suggesting approximately 14% upside from recent prices.

Investors find Shell attractive due to its resilience and moderate growth expectations, as evidenced by its dividend growth and earnings history. The company's planned share buybacks, disciplined investment policy, and solid balance sheet further bolster its appeal. It's worth noting that the stop-loss for Shell's shares should be kept at €24.00.

Analysts at Commerzbank remain bullish on Shell's shares, and US President Donald Trump's trade policies are likely to be a significant factor this week. As the market continues to fluctuate, Shell's ability to weather these storms and maintain its dividend payments will be closely watched by investors.

  1. The optimistic stance of UBS and Jefferies towards Shell indicates a strong interest in investing in the energy sector, particularly in finance and business.
  2. Despite concerns about falling oil prices and economic instability in the future, analysts such as Giacomo Romeo and Michele della Vigna favor companies with solid financial profiles and attractive dividend yields, like Shell, in the finance and energy industry.
  3. Investors find Shell appealing due to its resilience in the energy industry, moderate growth expectations, and dividend payments, making it a choice for those looking to invest in business and finance.

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