Shell Plc: An inflection point – five reasons to buy now

Research evidence excerpt

Shell Plc: An inflection point – five reasons to buy now

Equity Research

European Integrated Energy

12 June 2026

Shell Plc

An inflection point – five reasons

to buy now First Look

Shell has underperformed global energy peers YTD, but we SHEL.L/SHEL LN OVERWEIGHT

see a clear inflection point emerging. With a more robust European Integrated Energy POSITIVE

capital frame outlook, upside potential in near-term earnings Price Target GBP 45.00

Price (10-Jun-26) GBP 32.39

and a strengthening long‑term growth optionality, we see a Potential Upside/Downside +38.9%

compelling opportunity to add exposure. Source: Bloomberg, Barclays Research

European Integrated EnergyShell's share price is up only ~5% vs pre-Middle East crisis levels, and has underperformed

Lydia Rainforth, CFA

global peers by ~15% YTD. We view this as a compelling entry point and outline five reasons why

+44 (0)20 3134 6669

investors should add exposure. lydia.rainforth@barclays.com

Barclays, UK

1) Proven management delivering consistent execution, and we see more cost cutting

coming. We see Shell’s management as a key differentiator, with a stable leadership team and a Naisheng Cui, CFA

proven track record of strategy and operation executions. Following the successful delivery of +44 (0)20 7773 0486

naisheng.cui@barclays.com“Sprint 1”, Shell is targeting $5–7bn of cost reductions by 2028, which we view as credible. Given

strong execution and ongoing portfolio high‑grading, we see upside to $10bn over time,

supporting structurally higher margins and cash returns. Ramachandra Kamath

+91 (0)22 61752308

2) Reduced risk appetite for large-scale M&A post ARC acquisition. The $16bn ARC ramchandra.kamath@barclays.com

acquisition materially strengthens Shell’s production and long‑life resource base.