With an annual dividend yield of 3.39%, Shell plc (NYSE:SHEL) is included among the 12 Best Dividend Stocks to Invest in According to Hedge Funds.
Shell plc (NYSE:SHEL) is an integrated energy company with operations spanning exploration, production, refining, marketing, and chemical manufacturing, alongside growing investments in biofuels and hydrogen.
On May 18, HSBC analyst Kim Fustier upgraded Shell plc (NYSE:SHEL) from ‘Hold’ to ‘Buy’, while also raising the firm’s price target on the stock from £3,350 to £3,700. The target boost represents an upside potential of over 14% from the current share price.
The upgrade was driven by HSBC’s higher cash flow estimates and Shell’s improved medium-term growth visibility following its $16.4 billion acquisition of the Canadian energy company ARC Resources last month. The analyst firm believes that the valuation gap between Shell and TotalEnergies is unjustified, given the former’s higher dividend yield, lower exposure to the Middle East conflict, and improving upstream production visibility.
On the other hand, Morgan Stanley turned more bearish on Shell plc (NYSE:SHEL) earlier on May 12 and reduced its price target on the stock by £94 (read more details here).
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