(Sharecast News) - JP Morgan upgraded Royal Dutch Shell shares to 'overweight; and increased its price target on the oil company as it took a positive view of the UK oil sector.
The investment bank increased its rating on Shell shares from 'neutral' and upped its price target to £17 from £16. JP Morgan left its 'overweight' rating on BP shares intact and trimmed its price target to 400p from 425p.
JP Morgan analysts predicted an oil "supercycle on the horizon" with demand likely to rebound as vaccines to prevent Covid-19 stem the pandemic. The pandemic has prompted big oil companies to rebase their dividends and accelerate plans to move into green energy, they said.
"While oil demand's rebound led by new vaccines is likely to be 'bumpy' owing to varying degrees of penetration rates in emerging markets, out commodities oil outlook models global consumption almost back to pre-2019 levels in 1H22," Christyan Malek and colleagues wrote in a note to clients.
2 Nov 2021 07:36
UPDATE 4-'Cash machine' BP boosts share buyback as profit surges
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