Shell Shares: Analysts Remain Bullish Despite Oil Price Pressures

Analysts at Piper Sandler and HSBC continue to hold buy ratings on Shell (LON: SHEL) shares despite mixed adjustments to price targets following recent market developments and oil price volatility.

Piper Sandler raised its price target on Shell to $80 from $72 in a note Tuesday while maintaining an Overweight rating on the stock. 

The firm acknowledged a reduced outlook for 2025 and 2026 commodity prices but lifted its mid-cycle natural gas forecast to $3.50 per MMBtu from $3.25. 

Analysts at Piper Sandler remain confident in Shell’s balance sheet strength, resource depth, and visible growth trajectory, suggesting the company is well-positioned to weather potential market softness. 

However, they flagged risks to the current rate of shareholder returns, warning that, at $55–$65 per barrel Brent crude, Shell’s cash flow from operations would only cover a fraction of the ongoing share buyback programme.

Meanwhile, HSBC lowered its price target on Shell to 2,930p from 3,130p in a note Wednesday but reaffirmed a Buy rating. 

The bank cited the decline in oil prices since April as a key pressure point, noting that current levels challenge the financial models of integrated oil majors, which were originally built around $70 per barrel oil. 

Despite cutting its earnings forecasts for the sector, HSBC continues to view Shell favourably.