Citi Raises PT on Shell PLC (SHEL)

​Shell plc (NYSE:SHEL) is one of the Best Value Stocks to Buy for the Long Term. On March 2, Citi raised the firm’s price target on the stock to 2,950 GBp from 2,700 GBp and maintained a Neutral rating. The rating is based on the ongoing war in the Middle East. Citi believes that the global energy companies have a strong valuation support to withstand the crises and increased price targets across the sector.

​More recently, on March 3, Reuters reported that Shell plc (NYSE:SHEL) is committed to investing 3.5 billion reais ($667.84 million) in Raizen, which is Shell’s Brazilian sugar‑ethanol and fuel distribution joint venture with Cosan. The report highlighted that Raízen has posted repeated losses and its net debt has surged, with leverage now well above its previous levels. The losses are driven by large capex and poor weather that hurt agricultural yields.

​The investment is part of a recapitalization plan to stabilize Raízen’s balance sheet after heavy losses, rising net debt, and difficult operating conditions. Shell’s Brazil CEO, Cristiano Pinto da Costa, noted that he plans to keep Raízen together for now to stabilize the company first and will consider any structural split only after the company is stabilized.

​​Headquartered in London, Shell plc (NYSE:SHEL) produces oil and natural gas. The company’s operations are divided into the following segments: Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate.