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We recently compiled a list of the 10 Companies That Analysts Just Upgraded. In this article, we are going to take a look at where Shell plc (NYSE:SHEL) stands against the other companies that just upgraded.
The last week was full of negativity as the S&P went down nearly 3.5%. Matters were made worse by raging wildfires in Los Angeles, which have shocked people across the country. Amidst all this, there were a lot of positive developments as analysts continued to point out companies poised for a great performance in 2025.
Artificial Intelligence stocks continue to dominate coverage despite the fear of a slowdown in spending. With agentic AI the new hype, many companies are only just entering their AI journey, so investors still have a lot of undervalued plays that are worth looking at.
To come up with the list of 10 companies that analysts just upgraded, we only considered companies with a market cap of at least $1 billion.
A gas refinery lit up against the night sky, showing the scale of the company's petrochemical operations.
Shell plc (NYSE:SHEL)
Shell plc (NYSE:SHEL) is an energy and petrochemical company that operates through the segments of integrated gas, upstream, marketing, chemicals and products, and renewable and energy solutions. The company markets and trades commodities, including LNG, natural gas, electricity, oil, and carbon emission rights. It was upgraded by UBS from Neutral to Buy on the back of its cash flow strength.
Although Shell’s shares are down 10%, the company boasts a strong balance sheet which should also be adequate to complete its ongoing buyback. According to UBS analysts, there’s an opportunity for $6B through cost-saving measures. This amount can be utilized to meet or exceed the company’s 2025 targets.
With a free cashflow yield of 14%, Shell plc (NYSE:SHEL)’s FCF yield is ranked as the highest among European oil stocks. The company’s financial health is solid with significant profits and low debt. The company has no massive debt to pay off and several growth projects, so it can be a good option to consider in 2025.
Overall SHEL ranks 5th on our list of the companies that just upgraded by analysts. While we acknowledge the potential of SHEL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as SHEL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.