Highlights

  • Berenberg, and Rothschild & Co Redburn maintain ‘Buy’ and ‘Outperform’ ratings on Shell plc.
  • Average analyst target price stands at GBP 3,269.53, representing a 15.06% potential upside.
  • Shell reported Q3 2025 income of USD 12.2 billion, supported by higher trading margins and sales volumes.

Shell plc (LSE:SHEL), one of the world’s leading integrated energy companies, has received renewed positive ratings from several global brokerages. According to EODHD/Others data, Berenberg, and Rothschild & Co Redburn have maintained ‘Buy’ and ‘Outperform’ recommendations on the stock. Berenberg reiterated a ‘Buy’ rating with a target of GBP 3,250.00, while Rothschild & Co Redburn maintained its ‘Buy’ stance with a target of GBP 3,100.00.

The average target price across analysts stands at GBP 3,269.53.

Q3 2025 Performance Overview

For the third quarter of 2025, Shell reported income attributable to shareholders of USD 12.2 billion, reflecting higher trading and optimisation margins, increased sales volumes, and favourable tax movements. The performance was partly offset by higher operating expenses.

The quarter also included gains from asset disposals and impairment charges, contributing to identified items amounting to a net loss of USD 0.1 billion, compared with a net loss of USD 0.3 billion in Q2 2025.

Adjusted earnings and Adjusted EBITDA were driven by these same operational factors.

Cash Flow and Capital Allocation

Cash flow from operating activities stood at USD 12.2 billion, mainly supported by Adjusted EBITDA. This inflow was partly offset by tax payments of USD 2.7 billion.

Cash flow from investing activities recorded an outflow of USD 2.3 billion, which included USD 4.9 billion in capital expenditure and was partially offset by USD 1.8 billion in divestment proceeds.

Net debt at the end of Q3 2025 decreased to USD 41.2 billion, compared with USD 43.2 billion in the previous quarter, supported by free cash flow generation of USD 10.0 billion. Shell’s gearing ratio improved to 18.8%, down from 19.1% in Q2 2025.

Shareholder Distributions

Total shareholder distributions during the quarter amounted to USD 5.7 billion, comprising USD 3.6 billion in share repurchases and USD 2.1 billion in cash dividends. Shell announced a third-quarter dividend of USD 0.358 per share to be paid to shareholders.

For the first nine months of 2025, Shell reported operating cash flows of USD 33.4 billion and capital expenditure of USD 14.9 billion, with divestment proceeds contributing USD 2.3 billion.