With an annual dividend yield of 3.39%, Shell plc (NYSE:SHEL) is among the 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 chemicals manufacturing, along with growing investments in biofuels and hydrogen.
On May 18, HSBC analyst Kim Fustier upgraded Shell plc (NYSE:SHEL) from a “Hold” to a “Buy,” while raising the company’s price target on the stock from £3,350 to £3,700. The momentum target represents an upside potential of over 14% from the current share price.
The upgrade was driven by higher cash flow estimates from HSBC and improved visibility into Shell’s medium-term growth following its $16.4 billion acquisition of Canadian energy company ARC Resources last month. The analyst firm believes that the difference in valuation between Shell and TotalEnergies is not justified, given the former’s higher dividend yield, its lower exposure to the Middle East conflict and the improved visibility of upstream production.
Elsewhere, Morgan Stanley became more bearish on Shell plc (NYSE:SHEL) early on May 12 and reduced its price target on the stock by £94 (read more details here).
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