Shell Set to Shine After Lean Years

Integrated oil companies such as Shell and Total are set to reap the benefits from capital discipline in recent years, Morningstar analysts say

Allen Good 11 September, 2018 | 2:22PM

Shell Profits

Integrated oil companies such as Shell (RDSB) and Total (FP) present the greatest opportunity among their sector peers, according to Morningstar analysts. These firms are set to reverse years of little or no free cash flow despite significantly lower oil and gas prices as high levels of investment give way to growth and capital restraint.

Four-star rated Shell has a fair value estimate of £32.50, according to Morningstar analysts, above a current price of £24.20 per share.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Royal Dutch Shell PLC B1,226.00 GBX-3.04

About Author

Allen Good  Allen Good is a senior stock analyst covering the oil and gas industries.

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