Highlights

  • Shell Q4 2025 operating cash flow reached USD 9.4 billion, with shareholder distributions of USD 5.5 billion.
  • Unilever delivered 3.5% underlying sales growth, underlying operating margin of 20.0%, and €5.9 billion in free cash flow.
  • BAT expanded smokeless and new category revenue, with reported operating profit up 265% and a 2.0% dividend increase.

Analysts have maintained buy ratings on key FTSE 100 stocks, setting target prices that highlight market expectations for top UK companies. Shell plc (LSE:SHEL), Unilever plc (LSE:ULVR), and British American Tobacco plc (LSE:BATS) are under coverage, alongside recent financial results that provide insight into revenue, margins, and shareholder distributions. This combination of broker guidance and performance data offers investors a snapshot of current market positioning for these leading firms.

Broker Ratings and Target Prices

According to EODHD/Others consensus data, Shell plc has a buy rating with a target price of GBX 3,201.3. For Unilever, research house TD Cowen has issued a buy rating coupled with a target price of GBX 5,800. In the case of British American Tobacco, both Panmure Liberum and Jefferies have placed buy ratings on the stock, with respective target prices of GBX 5,000 and GBX 5,200.

Shell Posts USD 9.4 Billion Operating Cash Flow

Shell reported that its income for Q4 2025 was impacted by unfavourable tax movements, lower marketing margins, and higher operating expenses. Despite this, gains from asset disposals, including the Adura joint venture in the UK, contributed to identified items amounting to a net gain of USD 1.2 billion.

Adjusted EBITDA and earnings were supported by working capital inflows of USD 1.3 billion and joint venture dividends of USD 0.9 billion. Operating cash flow for the quarter totalled USD 9.4 billion, while investing activities reflected an outflow of USD 5.2 billion, including USD 6.0 billion in capital expenditure. Net debt increased to USD 45.7 billion, with gearing at 20.7%. Total shareholder distributions reached USD 5.5 billion, including USD 3.4 billion in share repurchases and USD 2.1 billion in dividends.

Unilever Records Underlying Sales Growth

Unilever reported full-year results showing underlying sales growth of 3.5% and turnover of €50.5 billion, down 3.8% due to adverse currency and disposals. Power Brands, representing 78% of turnover, led growth with 4.3% underlying sales growth.

Gross margin improved to 46.9%, supporting brand and marketing investment at 16.1%. Underlying operating margin rose to 20.0%, while underlying EPS increased 0.7% and diluted EPS by 6.2%. Free cash flow totalled €5.9 billion, with a 3% increase in quarterly dividends and a new €1.5 billion share buyback announced. Portfolio transformations included the Ice Cream demerger and 10 transactions since the start of 2025.

BAT Expands Smokeless and New Category Revenue

In the preliminary results for the period ended 31 December 2025, British American Tobacco added 4.7 million new consumers to its smokeless brands, with these products now representing 18.2% of total revenue. Reported revenue declined 1.0% due to currency effects but grew 2.1% at constant exchange rates.

New category revenue rose 7.0%, contributing GBP 442 million, and reported profit from operations surged 265%, largely due to Canadian settlement provision adjustments. Adjusted profit from operations increased 2.3%, with an adjusted operating margin of 44.0%. Dividend growth of 2.0% to 245.04p was announced, alongside a GBP 1.3 billion share buyback planned for 2026.

Shell, Unilever, and British American Tobacco remain prominent FTSE 100 names with buy ratings and positive financial updates. Each company reported cash generation, shareholder returns, and operational progress in 2025, while maintaining strategies to drive growth in 2026. Analysts’ target prices reflect continued investor interest, with the companies positioned to navigate currency effects, market conditions, and sector-specific trends.

Current Share Performance of Selected Stocks

Shell’s shares were trading at GBX 2,873, down 0.52% at the time of reporting but showing an 8.35% increase over the past year, indicating a positive year‑on‑year movement. Unilever’s stock was quoted at GBX 5,428, up 1.36% on the day, reflecting current upward movement in the share price. British American Tobacco plc’s shares were listed at GBX 4,383, down 0.48% in intraday trading, showing a modest decline at the time of the latest price update.

FAQs

  1. What are the analyst target prices for these FTSE 100 stocks?
  • Shell: GBX 3,201
  • Unilever: GBX 5,800
  • British American Tobacco: GBX 5,000–5,200
  1. How did Shell perform in Q4 2025?
  • Shell reported operating cash flow of USD 9.4 billion, net debt of USD 45.7 billion, and total shareholder distributions of USD 5.5 billion.
  1. What drove BAT’s growth in 2025?
  • Growth was driven by smokeless brands, new category revenue, and operational improvements, leading to a 265% increase in reported operating profit.