RBC Capital Markets downgraded Shell to 'sector perform' from 'outperform', cutting its price target to 3,200p from 3,600p. The broker cited pressure across multiple business units and a challenging operating backdrop. Shell shares closed at 2,687.50p, implying a 23% upside from the new target.

RBC analysts described Shell as 'running uphill' on its chemicals restructuring amid difficult market conditions. They flagged ongoing portfolio concerns that could persist without inorganic activity. The bank also pointed to headwinds in international gas and trading, areas where Shell has significant exposure.

The downgrade reflects shifting investor priorities since new management took over in early 2023. While Shell's free cash flow per share growth story centers on LNG, its valuation multiple has not expanded relative to the sector. RBC outlined a wide range, with a downside scenario of 1,500p and an upside case of 4,100p.