Goldman Sachs analyst Michele Della Vigna downgraded Shell to Neutral from Buy with a price target of $76, down from $79. The analyst cites valuation for the downgrade following the stock’s period of outperformance. Shell’s continued improvement in corporate returns and historically high cash flow generation has led to a “relatively expensive valuation” versus peers, Della Vigna tells investors in a research note. Shell is trading at premium despite its below-average free cash flow yield and less attractive cash returns outlook, contends the analyst.
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