Oil & gas
We have fundamentally remodelled for all of the Pan-European
oil majors. Higher price assumptions imply higher cost inflation; increased
exploration, capital and R&D spend; and volume effects. Our average EPS
estimates are up 27% for 2008F, 43% for 2009F and 54% for 2010F. The
average uplift for sector DCF is 21.1%. We upgrade RD Shell from Hold to
BUY (new target