Shares are almost 44% below the level of two years ago, but JPM said it sees the major as one of the best bets in the oil sector with the meeting confirming the emphasis is now on improving the fiscal performance to boost shareholder returns.
This includes a commitment to reducing debt to below US$65bn, the broker added.
JPM noted the Shell was likely to appeal the recent Dutch court ruling on its climate change transition policies.
The US broker said the oil giant does not see a fire-sale of its hydrocarbon assets as desirable for society, but its response remains ‘pragmatic’.
“We maintain that Shell offers premium leverage to a price/demand recovery (incl. a potential Supercycle, which the board appears sympathetic towards is but not going to plan for), and see execution on the ND (net debt) threshold as a key second-half catalysts.
“Shell shares offer the majors’ cheapest valuation and we stay overweight,” said the broker.
Shares rose 0.5% to 1,339.6p.