Scotiabank Raises Shell PT to $91 from $80, Maintains Sector Outperform

Scotiabank Raises Shell PT to $91 from $80, Maintains Sector Outperform

Scotiabank has revised its price target for Shell (SHEL) to $91, up from $80, while maintaining its sector outperform rating. The upgrade reflects the company's recent strategic partnerships and technological advancements in the oil and gas sector.

One notable development is Shell's contract with Tan Delta Systems, a Rotherham-based firm specializing in real-time oil analysis technologies. Tan Delta has secured a new contract with Shell Marine Products Singapore, valued at approximately £120,000, to deploy its real-time oil sensor solutions on thousands of vessels over the coming years News: Shell deal for innovative Rotherham firm^[1]. These solutions aim to improve reliability, reduce maintenance costs, and lower carbon footprint by monitoring critical equipment in real-time.

Tan Delta's solutions use sensing technology to analyze oil conditions at a molecular level, enabling accurate tracking of oil condition and early detection of issues such as contamination or unseen equipment failures. This technology is expected to enhance Shell's operational efficiency and sustainability efforts.

Chris Greenwood, CEO of Tan Delta, commented on the deal, highlighting the long-term relationship with Shell and the potential for growth as the market adopts these innovative technologies News: Shell deal for innovative Rotherham firm^[1]. The order, while small in the context of Shell's overall commercial marine market segment, signifies a positive step forward for Tan Delta and its partners.

Scotiabank's upgrade reflects the positive impact of such strategic partnerships and technological advancements on Shell's operational efficiency and market position. The investment bank maintains its sector outperform rating, indicating a bullish outlook on Shell's long-term prospects.