Shell: When The 'European Discount' Becomes An Opportunity
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IWA Research1.89K FollowersFollow5ShareSavePlay(13min)CommentsSummaryShell is upgraded to Buy, reflecting robust cash flows, disciplined capital allocation, and potential for a narrowing European valuation discount.SHEL delivered strong Q3 results with $10B free cash flow and maintains a compelling long-term growth pipeline, targeting over 10% nFCF per share growth through 2030.Management continues sizable buybacks and dividend growth while investing globally in LNG, oil, targeting margin-focused expansion.Valuation suggests solid upside even with conservative estimates, with risks centered on oil price volatility and persistent European peer discounts. EyeEm Mobile GmbH/iStock via Getty Images Introduction Last time I covered Shell (SHEL), I rated them a Hold due to the buybacks making it hard to find an attractive entry level, even though the company is strong fromThis article was written byIWA Research1.89K FollowersFollowAs of 2025, I've got over 10 years of researching companies. In total, throughout my investing life, I estimate that I researched (in depth) well over 1000 companies, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SHEL, TTE over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.