01:17 AM EDT, 05/03/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our TP for Shell to $71 ($66), reflecting a P/NAV of 1.2x, broadly in line with peer average of 1.2x. Q1 2024 adjusted earnings of $7.7 billion (-20% Y/Y; +6% Q/Q) topped consensus by 20%. Specifically, earnings of Chemical & Products soared Q/Q to $1.6 billion from $29 million in Q4 2023 on favorable trading activities, higher refining and chemical margins, alongside better utilization. Meanwhile, the performance of Upstream (-37% Q/Q) and IG (-7% Q/Q) was broadly within expectations given lower gas prices and reduced trading results. For Q2 2024, Shell guides a lower production for Upstream of 1,630-1,830kboe/d (Q1 2024: 1,872kboe/d) and IG 920-980kboe/d (Q1 2024: 992kboe/d) reflecting higher maintenance activities, but expects steady utilization for refineries and chemical plants. We lift our 2024 EPS forecast to $8.40 ($8.20) and 2025's to $8.80 ($8.60). We expect better chemical margins ahead given tighter supply but weak gas prices will remain a drag to 2024's profitability.