Shell to sell Canadian Natural Resources stake for $3.3bn

Marco Green
May 8, 2018

Royal Dutch Shell has GBX 3000 highest and GBX 2411 lowest target.

Royal Dutch Shell has agreed to sell its entire stake in Canadian Natural Resources for $3.3bn.

Credit Suisse, which sees Shell as an "outperform, ' boosted its price target on Shell from 2,725p to 2,850p last week". The stock of Royal Dutch Shell plc (LON:RDSB) has "Buy" rating given on Monday, May 7 by Goldman Sachs. Royal Dutch Shell had 31 analyst reports since November 9, 2017 according to SRatingsIntel. The stock has "Overweight" rating by Barclays Capital on Monday, November 13. The firm earned "Overweight" rating on Friday, November 24 by Barclays Capital. As per Wednesday, January 3, the company rating was maintained by Barclays Capital. Deutsche Bank maintained Royal Dutch Shell plc (LON:RDSB) on Monday, January 29 with "Buy" rating. JPMorgan Chase restated an "overweight" rating and set a GBX 2,950 ($41.41) price objective on shares of Royal Dutch Shell in a report on Wednesday, February 14th.

Royal Dutch Shell (NYSE:RDS.A)'s stock had its "buy" rating reissued by Piper Jaffray in a research note issued to investors on Monday, April 23rd. As per Friday, November 10, the company rating was maintained by Barclays Capital. As per Tuesday, February 20, the company rating was maintained by Barclays Capital.

The stock increased 1.55% or GBX 40.5 during the last trading session, reaching GBX 2655.5.

The firm announced this morning it had entered into an underwriting agreement with Goldmach Sachs, RBC Capital Markets, Scotiabank and TD Securities to offload just over 97.5m shares in the firm. Piper Jaffray also issued estimates for Royal Dutch Shell's Q1 2018 earnings at $1.27 EPS, Q2 2018 earnings at $1.19 EPS, Q3 2018 earnings at $1.30 EPS, Q4 2018 earnings at $1.19 EPS, FY2018 earnings at $4.95 EPS, Q1 2019 earnings at $1.24 EPS, Q2 2019 earnings at $1.34 EPS, Q3 2019 earnings at $1.34 EPS, Q4 2019 earnings at $1.19 EPS, FY2019 earnings at $5.12 EPS, Q1 2020 earnings at $1.24 EPS and FY2020 earnings at $5.26 EPS. It has underperformed by 11.55% the S&P500.

People familiar with the situation told Reuters almost a year ago that the Anglo-Dutch group had made a decision to offload the stake in Canadian Natural Resources that it acquired as part of a deal to retreat from Canada's oil sands. It now has negative earnings. The company also liquefies gas; converts natural gas to liquids to provide fuels and other products; markets and transports oil and gas; and extracts bitumen from mined oil sands and converts it to synthetic crude oil.

Other reports by Click Lancashire

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