Market Overview

UPDATE: Bank of America Reinstates Coverage on Royal Dutch Shell on Plenty of Hope, Limited Visibility

Share:
Related
Shell Sells Stakes In Mukhaizna Field To Indian Oil
Credit Suisse Expects Fluor Corporation Will Be Boosted By Energy Sector Spending
Shell Approves Major GoM Development (Seeking Alpha)

In a report published Friday, Bank of America analyst Christopher Kuplent reinstated coverage on Royal Dutch Shell plc (NYSE: RDS-A) 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.

Latest Ratings for RDS.A

DateFirmActionFromTo
Nov 2017Societe GeneraleDowngradesBuyHold

View More Analyst Ratings for RDS.A
View the Latest Analyst Ratings

Posted-In: Bank of America Christopher KuplentAnalyst Color Initiation Analyst Ratings

 

Related Articles (RDS.A + RDS-A)

View Comments and Join the Discussion!