“Recent quarterly results have come in below our expectations,” Morgan Stanley analysts said in a note
Morgan Stanley reckons portfolios could do with fewer Royal Dutch Shell PLC (LON:RDSB) shares, reducing its rating for the oiler to ‘equal weight’ from ‘overweight’.
The downgrade follows Shell’s quarterly results, which were out last week.
“Recent quarterly results have come in below our expectations,” Morgan Stanley analysts said in a note.
“FCF and gearing are still set to improve but no longer in a differentiated manner. Dividend growth is now lagging peers, and the buyback has started but at a lower-than-expected pace.