Mizuho raises Shell stock price target to $103 on LNG, refining outlook

Mizuho has increased its price target on Shell Plc. shares to $103, up from $98, while maintaining a Neutral rating on the stock. The current stock price is $100.18, close to its 52-week high of $101.17. Mizuho anticipates a 5% upside for the third-quarter 2026 EBITDAX and a 13% increase in earnings per share, aligning with three analysts revising their earnings upwards.

The lower price-to-earnings (P/E) ratio of 11.23 and price-to-earnings growth (PEG) ratio of 0.11 indicate strong value for the company relative to its growth prospects. Shell's recent acquisitions, such as the ARC Resources deal on September 2, 2026, and favorable volumes from Qatar, contribute to the bullish outlook. Improving liquefied natural gas (LNG) pricing and refining margins are expected to offset a potential decline in oil prices.

The company's upcoming earnings call will likely focus on the ARC Resources acquisition, asset portfolio optimization, including the sale of the GOA platform and U.S. power unit transactions, and the role of the Chemicals segment. Shell recently reported mixed results for Q2 2026, with revenue exceeding expectations but earnings per share falling short.

The company announced $3 billion in stock buybacks, maintained its cash capital expenditure guidance for 2026 between $24 billion and $26 billion, and made significant acquisitions, including U.S. fuel retailer Tri Star Energy and offshore exploration assets from bp.