In a report published Friday, Bank of America analyst Christopher Kuplent reinstated coverage on Royal Dutch Shell plc RDS with a Neutral rating and $73.68 price target.
In the report, Bank of America noted, “We see RDS as one of the more challenged Global Supermajors within its peer group. We believe RDS falls short on visibility regarding the required recovery in OCF in order for its FCF to cover its budgeted capex as well as investors' shareholder return expectations. We therefore assume a dividend cut is avoided thanks to increasing gearing towards 20% by the end of the decade, but prefer higher FCF coverage and falling gearing available elsewhere in the sector.”
Royal Dutch Shell plc closed on Thursday at $72.01.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in