Piper Sandler lowers Shell PT to $82 from $84, maintains Overweight rating

Piper Sandler lowers Shell PT to $82 from $84, maintains Overweight rating

In a recent update, Piper Sandler has adjusted its price target for Shell PLC (SHEL) to $82, a reduction from its previous estimate of $84. Despite this downward revision, the firm maintains an "overweight" rating on the stock, indicating a positive outlook.

The latest move by Piper Sandler comes amidst mixed signals from other analysts and recent market developments. Shell's stock experienced a 1.09% decline on Friday, August 15, 2025, falling from $72.64 to $71.85 [1]. This drop followed a series of mixed signals from technical indicators and a notable increase in institutional holdings.

GQG Partners LLC significantly increased its stake in Shell during the first quarter of 2025, purchasing an additional 2,861,235 shares [2]. This move, along with similar purchases by other institutional investors, has bolstered Shell's stock price and could signal a growing investor confidence in the company's prospects.

However, Piper Sandler's adjustment reflects a cautious approach to the stock's valuation. The firm's new target of $82 suggests a more conservative estimate of Shell's potential upside, possibly influenced by recent market volatility and the company's ongoing strategic shifts.

Shell's recent earnings report, released on July 31, 2025, showed strong financial performance, with earnings per share (EPS) of $1.42, exceeding analyst expectations by $0.29 [2]. The company also announced a quarterly dividend of $0.716 per share, providing an annualized yield of 4.0% [2]. These positive developments have contributed to Shell's overall strong financial health.

Despite the downward adjustment in the price target, Piper Sandler's "overweight" rating indicates a continued belief in Shell's long-term prospects. The firm's decision to maintain this rating, despite the lower target price, suggests a balanced view that acknowledges both the stock's recent performance and the potential risks.

Investors should closely monitor Shell's ongoing strategic initiatives and future earnings reports to gauge the stock's potential for recovery and growth. As Shell continues to navigate the complex energy market, its ability to execute its strategic plans effectively will be crucial in determining its future performance.

References:

[1] https://stockinvest.us/stock/SHEL
[2] https://www.marketbeat.com/instant-alerts/filing-shell-plc-unsponsored-adr-nyseshel-shares-bought-by-gqg-partners-llc-2025-08-13/