RBC Capital Maintains Buy Rating on Shell with £34 Target, Analyst Consensus Suggests 11.8% Upside.

RBC Capital maintained a Buy rating on Shell (UK) with a price target of £34.00. The company's shares closed at £2,715.50. Borkhataria covers the Energy sector and has a 58.80% success rate on recommended stocks. The analyst consensus rating for Shell (UK) is Moderate Buy with an average price target of £3,035.98, implying an 11.80% upside from current levels. The company reported a quarterly revenue of £65.41 billion and a net profit of £3.6 billion in the latest earnings release.

Shell plc (SHEL) has made significant strides in the Eastern Mediterranean by securing the development rights for Egypt’s Rahmat gas field, a major untapped resource. The move underscores Shell’s renewed commitment to high-potential deepwater assets and its strategic expansion in the region [1].

Strategic Importance of the Rahmat Field

The Rahmat field, situated in the northeastern Mediterranean, is estimated to contain approximately 1.3 trillion cubic feet (TCF) of natural gas and 80 million barrels (MMbbl) of condensate, making it one of the most valuable undeveloped assets in the region. The field’s development could enhance Egypt’s LNG export potential and solidify Shell’s position as a key player in the Mediterranean energy landscape [1].

Competitive Bidding and Market Dynamics

Shell emerged victorious in a competitive bidding process for the Rahmat field, submitting the highest offer among 13 offshore blocks. The tender, launched in March 2025 by Egypt’s Ministry of Petroleum and Mineral Resources, aimed to unlock value from the country’s offshore and onshore reserves. Shell’s success reflects a broader trend of international oil majors returning to Egypt, drawn by favorable investment terms and robust geological data [1].

Shell’s Expanding Footprint in Egypt

The Rahmat field acquisition would represent a significant expansion of Shell’s footprint in Egypt, where the company has been active for decades. The deal aligns with Shell’s strategy to focus on natural gas as a key bridging resource in response to the global energy transition. Shell’s extensive operational expertise and strategic partnerships position it to expedite development timelines and deliver first gas faster than industry norms [1].

Analyst Ratings and Financial Performance

Despite the recent strategic move, Shell’s shares closed at £2,715.50, with RBC Capital maintaining a Buy rating and a price target of £34.00. The analyst consensus rating for Shell is Moderate Buy, with an average price target of £3,035.98, implying an 11.80% upside from current levels. The company reported a quarterly revenue of £65.41 billion and a net profit of £3.6 billion in its latest earnings release [2].

Conclusion

The potential acquisition of the Rahmat field by Shell represents a strategic milestone for both the corporation and Egypt’s energy landscape. This deal could set the stage for further investments in Egypt, attracting top-tier international players and highlighting the country’s ability to attract significant investments amidst global uncertainties. As Shell advances negotiations, the industry is watching closely, with the Rahmat field poised to become a cornerstone in Shell’s global gas portfolio and a powerful symbol of Egypt’s energy renaissance.

References

[1] https://www.tradingview.com/news/zacks:92ee86a45094b:0-shell-inches-closer-to-securing-rahmat-gas-field-rights-in-egypt/
[2] https://uk.finance.yahoo.com/quote/SHELL.AS/