RBC Resumes Shell Coverage at Sector Perform Amid Planned ARC Resources Buy

06:42 AM EDT, 07/15/2026 (MT Newswires) -- RBC Capital Markets revisited its investment case for Shell (SHEL.L, SHELL.AS), resuming its coverage with a sector perform rating as it took into account the British oil and gas giant's planned acquisition of Canadian energy company ARC Resources. "Recent events in the Middle East have intensified the shift for investors away from distributions and towards portfolio longevity. While we see growing attractions following recent underperformance including more compelling relative valuation, we see a risk that Shell is becoming a company that is 'ruthlessly' well run, but one that does not necessarily offer what investors are looking for," analysts said Wednesday. "We incorporate the ARX acquisition into our model, while also updating for Shell's recent trading update. The ARX deal helps support the liquids portfolio and provides integration and feed gas into a potential LNG Canada Phase 2 development." As such, RBC lifted its EPS estimates by 1.5% for 2026, 8.8% for 2027 and 8.2% for 2028. Long-term production and cash flow forecasts for the company were also revised. The stock's price target stands at 40 pounds sterling.