Shell shares could rise 37% as Jefferies reaffirms Buy rating despite dividend and buyback shift.

Jefferies has reiterated a 'Buy' rating on Shell PLC with a £44 price target, suggesting up to 37% upside. The broker noted that while Shell’s first-quarter operational results were well received, the stock has lagged peers due to a shift in shareholder returns—a 5% higher dividend offset by a $0.5 billion quarterly reduction in share buybacks. Shell’s management emphasized that their capital return framework remains strong, with commitments to cash returns and ongoing buybacks, maintaining flexibility for additional repurchases when appropriate.