Shell downgraded as weaker nat gas price to weigh cash flow, Cowen says

|About: Royal Dutch Shell plc (RDS.A)|By:, SA News Editor

Royal Dutch Shell (RDS.A +0.4%) lags behind fellow oil producers in today's trade after Cowen analysts downgraded shares to Market Perform from Outperform with a $60 price target, cut from $69.

Cowen's Jason Gabelman says the downgrade reflects Shell's peer leading exposure to international gas prices, which he forecast will fall through year-end 2020 and thus limit the company's free cash flow growth.

Shell's cash generation through 2020 post-divestments could fall $8B short of shareholder returns, making dividend increase unlikely before 2021, Gabelman says.

RDS.A's average Sell Side Rating is Outperform, its Seeking Alpha Authors Rating is Bullish, and its Quant Rating is Neutral.

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