UPDATE: Goldman Sachs Sees 31% Upside in Royal Dutch Shell (RDS-A) and Adds to Conviction Buy List

March 11, 2016 7:03 AM EST
Get Alerts RDS-A Hot Sheet
Price: $51.04 --0%

Rating Summary:
    22 Buy, 14 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 20
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(Updated - March 11, 2016 10:04 AM EST)

Goldman Sachs upgraded Royal Dutch Shell (NYSE: RDS-A) from Buy to Conviction Buy with a price target of $60.60, suggesting upside of 31%.

Analyst Henry Tarr said, "Shell (and BP) has the highest 2016E div. yield in our coverage. We expect this to decrease as div. cash coverage grows substantially over the next 12 months due to cost cutting, greater capital discipline, synergy realization, disposals and a rising oil price. The acquisition of BG provides near-term volume growth in Brazil and further opportunity to invest in high-quality barrels low on the cost curve. It should enable better capital efficiency and more discipline in project selection, allowing capex to fall further in 2017/18."

For an analyst ratings summary and ratings history on Royal Dutch Shell click here. For more ratings news on Royal Dutch Shell click here.

Shares of Royal Dutch Shell closed at $47.33 yesterday.

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