TD Cowen Cuts Shell and BP Share Price Targets But Sees Buying Opportunity After Oil Price Drop

TD Cowen trimmed its price targets on Shell (LON: SHEL) and BP (LON: BP.) as part of a second-quarter earnings preview of the oil majors sector, while flagging what it described as “pockets of opportunity” following a “rapid correction” in crude prices and equities.

Analyst Jason Gabelman lowered his price target on Shell to $107 from $110, maintaining a Buy rating, and cut his target on BP to $40 from $44, keeping a Hold rating on the stock. Despite the reductions, TD Cowen said it favors Shell, Chevron and TotalEnergies heading into earnings season.

Shell shares closed 0.9% higher on Thursday, while BP gained 1.9% on the day. Year-to-date, BP has outperformed with a gain of 7.5% compared to Shell’s 5.7% advance.

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Oil prices were little changed on Thursday, with Brent crude essentially flat at $71.60 per barrel and West Texas Intermediate slipping 0.13% to $68.49. The muted price action follows a sharp pullback in crude that has weighed on energy sector valuations in recent weeks.

TD Cowen’s preference for Shell over BP heading into the upcoming reporting season is reflected in its ratings, with Shell rated Buy and BP rated Hold.

According to Yahoo Finance, the consensus estimate for Shell’s quarterly revenue is $89.02 billion, while analysts expect BP to report $58.54 billion in revenue.