Royal Dutch Shell Group .com Rotating Header Image

Reuters: UPDATE 1-RESEARCH ALERT-Bernstein cuts BP, Shell price targets

(Reuters) – Bernstein cut its price targets on BP Plc (BP.L: Quote, Profile , Research) and Royal Dutch Shell Plc (RDSa.L: Quote, Profile , Research) on lower production forecasts from the oil giants, and said it saw greater growth potential from Shell’s portfolio.

Shell has a stronger relative cashflow, and this, along with its more defensive business mix, would make investors favour it at this point, the brokerage said in a research note.

The Anglo-Dutch company’s greater exposure to unconventional hydrocarbons such as liquefied natural gas, gas-to-liquids, oil sands and tight gas, should deliver superior growth to BP’s after 2010, Bernstein’s note said.

Bernstein cut its price target on Shell to 1,824 pence from 1,912 pence. Its new target for BP is 558 pence, down from 575 pence.

Both continue to be rated “market-perform” on the brokerage’s view that commodity prices would fall in 2007. (Reporting by Kuncheria Cholemkeril in Bangalore)

© Reuters 2007. All Rights Reserved

Fri Mar 2, 2007 4:26am ET

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Comments are closed.