Shell’s $16.4 billion acquisition of ARC Resources drives HSBC’s upgrade and 14% upside forecast amid stronger cash flow outlook.
HSBC upgraded Shell to Buy and raised its price target to £3,700 from £3,350, citing improved growth visibility after Shell’s $16.4 billion purchase of ARC Resources. The new target implies over 14% upside from current levels.
The upgrade reflects higher cash flow estimates and Shell’s enhanced upstream production outlook. HSBC also noted Shell’s 3.39% dividend yield and lower Middle East exposure compared to peers like TotalEnergies.
Earlier in May, Morgan Stanley cut its Shell price target by £94, highlighting divergent analyst views on the stock’s valuation.