Shell Shares Dip As Analysts Shift: JPMorgan Boosts Target, as BofA Trims

Shell's share price (LON:SHEL) has pulled back 1.5% today to 2,757.50 following some mixed signals from analysts, as the debate about its future prospects in a dynamic energy market continue.

JPMorgan increased its price target on the day, while Bank of America downgraded its rating, highlighting differing views on the company's ability to navigate evolving industry conditions.

Shell's trajectory is now subject to increased scrutiny as markets weigh the bullish perspectives against growing concerns about declining oil and gas prices and shrinking refining margins. This divergence in analyst sentiment underscores the complexities facing Shell and the broader energy sector as it looks ahead to 2026.

JPMorgan adjusted its price target for Shell to 3,200p, up from 3,100p, reaffirming its “Overweight” rating. This decision signals continued confidence in Shell's potential to outperform its peers, even though the firm removed the stock from its Analyst Focus List. The revised target suggests that JPMorgan expects Shell to maintain a strong position within the European oil landscape.

Conversely, Bank of America downgraded Shell to “Neutral” from “Buy,” reducing the price target from 3,200p to 3,100p. The firm's analysis points to potential headwinds stemming from lower oil and gas prices and deflating refining margins. These factors are projected to strain free cash flow generation, leaving the company with fewer avenues for inorganic growth that aren't already factored into the share price.

Other analyst actions further illustrate the varied outlook on Shell. Jefferies Financial Group raised its price target to 3,200p, maintaining a “Buy” rating, signalling optimism regarding Shell's growth trajectory. Citigroup, while maintaining a “Neutral” rating, increased its price target to 2,700p from 2,650p, indicating a slightly more positive, but still cautious, stance. Berenberg also expressed confidence, increasing its price target from 3,000p to 3,250p and reiterating a “Buy” rating.

While some analysts emphasize Shell's strategic initiatives and market leadership, others caution against potential margin pressures and limited opportunities for inorganic expansion.

Analyst Summary: Bull and Bear Cases

Ultimately, the Shell share performance will likely hinge on its ability to effectively manage costs, optimize its operations, and capitalize on emerging opportunities in the energy sector. The contrasting analyst opinions suggest that the path ahead is uncertain, although price targets remain largely to the upside.