Key Highlights for Investors:
- Shell predicts a decline in Q1 2025 liquefied natural gas volumes, potentially affecting earnings.
- Wall Street analysts offer an average target price with a notable potential upside for Shell shares.
- GuruFocus GF Value suggests Shell is slightly undervalued compared to its current trading price.
Shell's LNG Output Expected to Decline
Shell PLC (SHEL, Financial) anticipates a reduction in its liquefied natural gas (LNG) volumes for the first quarter of 2025, forecasting between 6.4 and 6.8 million tons. This marks a decline from the 7.1 million tons recorded in the fourth quarter of 2024. The decrease is attributed to adverse weather conditions and necessary maintenance activities in Australia. In contrast, Integrated Gas production is projected to experience a slight increase. However, this may not offset the dip in earnings, which could see a downturn due to significant depreciation impacts.
Wall Street Analysts' Price Projections
According to forecasts from 13 Wall Street analysts, Shell PLC (SHEL, Financial) is expected to hit an average price target of $81.48, with predictions ranging from a high of $92.00 to a low of $72.00. This average target suggests a 27.06% upside potential from its current trading price of $64.13. For more comprehensive estimates, visit the Shell PLC (SHEL) Forecast page.
Brokerage Recommendations
Shell PLC (SHEL, Financial) holds an "Outperform" status based on the consensus recommendation from 14 brokerage firms, reflected in an average brokerage rating of 1.7. This rating is part of a scale where 1 represents a "Strong Buy" and 5 signifies a "Sell."
GuruFocus GF Value Assessment
GuruFocus estimates the GF Value of Shell PLC (SHEL, Financial) at $66.74 in one year, indicating a 4.07% upside from its current price of $64.13. The GF Value is derived from historical trading multiples, past business growth, and future performance projections. For more detailed analysis, visit the Shell PLC (SHEL) Summary page.
Overall, while Shell faces challenges in its LNG output, analysts remain optimistic about its stock performance, offering a potential opportunity for investors.
