Value still exists in Shell, despite threat of EVs

Peter Wilmshurst

Royal Dutch Shell’s valuations make its stock look very tempting despite concerns over electric cars taking over.

Why do we find Shell attractive?

  • Acquisition of BG makes Shell the global leader in LNG
  • Shell raised their Free Cash Flow (FCF) targets by 20%
  • Gearing expected to hit 20% target in 2018
  • FCF target for 2021 at $65 oil delivers a 10% FCF yield
  • 6% dividend yield for 2018

Until the new batteries actually deliver as promised, gas and diesel will remain a part of the automotive mix that makes a strong case for Shell.


Peter Wilmshurst

Peter Wilmshurst is the portfolio manager of ASX listed Templeton Global Growth Fund (ASX: TGG) and an executive vice president in the Templeton Global Equity Group with research responsibility for banks in Europe, and Asian telecommunications...

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