Shell (SHEL) Shares Rally 0.16% on Strategic Shifts, Mixed Analyst Sentiment; Hits $30.92 Intraday High

Shell (SHEL) shares rose 0.16% on Friday, marking a three-day upward trend with a cumulative gain of 4.36%. The stock hit an intraday high of $30.92, its strongest level since October 2025, driven by a 0.74% rally amid mixed analyst sentiment and strategic developments.

Analysts remain divided on Shell’s valuation and execution. While institutions like Scotiabank and Piper Sandler raised price targets, citing resilience in refining margins and improved Q3 performance, others expressed caution over debt-funded buybacks and earnings sustainability. A $1.7 billion arbitration loss with Venture Global over LNG shipments added short-term uncertainty, though upstream progress in Trinidad and Tobago—authorized to restart a Venezuela-linked gas project—offset some concerns.

Strategic shifts further shaped the narrative. Shell’s decision to divest its Indian renewable energy unit, Sprng Energy, signaled a refocus on core assets. The company’s capital return strategy, including a 3.78% dividend yield, remains a draw for investors, though questions linger about long-term profitability amid softening demand and energy transition pressures. A revised fair value estimate of $30.84, down marginally from $30.92, reflects recalibrated growth expectations and margin risks.

Despite a 5.15% decline in short interest and a “Moderate Buy” consensus, the stock’s PEG ratio of 1.82 suggests potential overvaluation against earnings forecasts. Investors are closely watching Shell’s ability to balance LNG expansion, portfolio optimization, and operational risks as it navigates a volatile energy landscape.