Societe Generale downgrades Royal Dutch Shell (RDSB.LN) to "hold" from "buy" following poor 3Q results Thursday. Says there is a near-term lack of visibility on free cash flow. Says if it takes longer to turn around the loss-making North America unconventional business, or if oil prices drop to $90/bbl for a couple of years, this could place further pressure on free cash flow
Societe Generale downgrades Royal Dutch Shell (RDSB.LN) to "hold" from "buy" following poor 3Q results Thursday. Says there is a near-term lack of visibility on free cash flow. Says if it takes longer to turn around the loss-making North America unconventional business, or if oil prices drop to $90/bbl for a couple of years, this could place further pressure on free cash flow. Adds the oil giant said for the first time that 2013 is a peak year for net capex, which is encouraging; however, says there is no explicit guidance as to the size or phasing of asset disposals. Reduces target price to 2400p from 2500p. Downgrades 2013 EPS forecast by a 13% to $3.43. Shell Class B ordinary shares trade up 1.5% to 2192p in London, after having slumped 5.2% Thursday