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.


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