TD Cowen Lifts Shell Target to $115 and BP to $47

TD Cowen raised its price target on Shell (LON: SHEL) to $115 from $107, and lifted its target on BP (LON: BP.) to $47 from $41. The broker kept a Buy rating on both stocks, according to a research note from analyst Jason Gabelman.

The increases were made as part of a third-quarter earnings preview covering the integrated oil group, the large companies that combine oil and gas production with refining and fuel sales. Shell’s target was cut on the 2nd of July, to $107 from $110.

In London on Monday, Shell closed at 3,654.5p, up 1.20% from 3,611p on Friday. BP finished at 563.5p, up 0.90% from 558.5p.

Both shares have climbed sharply over a longer stretch. Shell is up about 26% since the 26th of June, when it stood at 2,898p, while BP has gained about 20% from 469.4p.

TD Cowen says the stocks are benefiting from commodity strength due to the Middle East conflict. That strength is the backdrop to the higher targets on both companies.

Gabelman tells investors the companies should continue to put excess cash onto the balance sheet rather than raising distributions, which he says indicates elevated macro uncertainty.

For UK holders, the distinction matters. The broker keeps Buy ratings and higher targets on both shares, but it does not expect the companies to raise distributions.