Berenberg is maintaining its 'buy' recommendation on Shell and its price targets of 34 pounds and 40 euros, pointing out that the energy group is continuing to implement its new strategy, targeting a 10% annual improvement in underlying FCF by 2025.

In addition to share buybacks, which continue to amount to around 6% of market capitalization this year, the broker highlights portfolio rationalization, cost reductions and operational improvements.

"Valuation is not demanding, and Shell remains one of our top picks in the sector", adds Berenberg, noting that the share trades on P/E 2024 ratios of 8.7x and EV/DACF of 5.2x, with a dividend yield of 3.8%.

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