Shell PLC (LSE:SHEL, NYSE:SHEL) looks well positioned to shift towards becoming a net-zero emission company under its new leadership, according to Deutsche Bank AG (NYSE:DB).
The oil giant appointed Wael Sawan as chief executive at the start of 2023 along with a chief financial officer in May and a new head of upstream at the end of October.
Deutsche Bank reckons this “reinvigorated team” can help the FTSE 100 firm execute its energy transition scheme, reducing its reliance on oil and ultimately making it net-zero by 2050.
“It's no easy challenge, but the new approach should accelerate and reduce the cost of decision-making, within a more value-focussed culture,” said Deutsche Bank.
One benefit from this is asset profitability is expected to improve, the bank added.
Therefore, Shell’s share price target has been upgraded from 2,907p to 3,268p by the German bank.
On Friday, the energy company confirmed trading in its gas business during the second quarter was expected to be “significantly lower” than in previous quarters.
Shares in Shell rose nearly 1.5% on Monday after it opened at around 2,290p.