Scotiabank Lifts BP and Shell Share Targets as Oil Sector Outlook Mixed

Scotiabank has raised its price targets on both BP (LON: BP.) and Shell (LON: SHEL), reflecting an updated view on the integrated oil sector even as the firm strikes a mixed tone on the broader energy landscape.

Analyst Betty Zhang lifted her target on Shell to $122 from $91, while BP’s target was raised to $58 from $41. Both stocks were maintained at Outperform.

The adjustments are part of a broader revision to Scotiabank’s coverage of U.S. integrated oil, refining and large-cap exploration and production stocks.

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The firm’s sector stance is nuanced. Scotiabank sits generally above consensus earnings forecasts for the E&P peer group but below consensus for independent refiners.

Looking beyond the current quarter, Zhang expects investor attention to shift toward whether recent oil market turbulence will translate into changes in activity levels through 2026 and beyond.

Broader analyst sentiment on both stocks remains constructive but measured. On BP, the consensus price target stands at 618.1p, implying roughly 8% upside from Wednesday’s close, with 12 analysts carrying buy ratings against 15 holds and 4 sells.

Shell commands a slightly more bullish consensus, with a target of 3,777.5p suggesting approximately 14.5% upside. Of the 31 analysts covering the stock, 11 have buy ratings, 19 are at hold and one carries a sell.

Both companies are, of course, navigating a period of heightened uncertainty in oil markets, with the ongoing disruption to Strait of Hormuz flows adding complexity to the near-term demand and supply outlook.