Citi has provided its reaction to the reported restructuring of Shell PLC (LSE:SHEL, NYSE:SHEL)’s energy transition business.
“The move looks like further confirmation of our view that European oil companies are moving away from renewables and focusing instead on industrial decarbonisation, a shift that we have termed Transition 2.0,” a note from American bank read.
“In many respects, Shell's move is similar to the recent one made by UK peer BP, although perhaps less dramatic.”
The stock closed the day barely changed at 2,310p. Of the 19 banks and brokerages covering Shell, 13 are positive on the stock. The consensus price target is 2,849p.