Opinions
The Panic-Proof Portfolio (Stockchase Research)
Shell plc
SHEL-N
TOP PICK
Mar 14, 2023
Stock price when the opinion was issued
You might be interested:
Premium contentWith growing cash reserves, a 15% ROE and trading at 1.1x book value, we reiterate SHEL as a TOP PICK. The company is introducing the fastest EV recharging stations at its Singapore stations, using renewable solar sources. We recommend trailing up the stop (from $56) to $57, looking to achieve $72, upside potential of 17%. Yield 1.8%
(Analysts’ price target is $72.23)Premium contentPremium contentOur PAST TOP PICK with SHEL has triggered its stop at $62. To remain disciplined, we recommend covering the position at this time. When combined with our previous recommendations, this will result in a net investment gain of 5%.
Demand for carbon energy is still there within the broader, increasing demand for all energy. Plus, a place like Canada doesn't have the grid to support EVs the way some other countries can. People want nuclear, but not in their backyards. So what's the alternative?
Buying back shares in significant quantities. You make $$ when you buy, not when you sell. Good value, likes it long term. Dividend is safe. Yield is 3.84%.
We reiterate SHEL, an ideal international diversified energy play, operating in over 70 countries, in everything from wind farms to renewable natural gas as a TOP PICK. It trades at 6x earnings, just over 1x book value, and supports a ROE of 23%. The company is generating great cash flow allowing cash reserves to grow, while aggressively retiring debt and buying back shares. We recommend trailing up the stop (from $52) to $55, looking to achieve $71 -- upside over 19%. Yield 3.4%
(Analysts’ price target is $70.52)