With tough trips to title-challenging Arsenal and Manchester United still on the horizon for the Reds, Shephered feels that Newcastle must be considered favourites for the all-important fourth-placed finish.
He said: "The heat is really on for the race for fourth place with anything up to 10 teams in serious contention for the chance to play Champions League football next season.
"A lot of people are saying ourselves and Liverpool are the favourites and I would agree with that view. I feel we and Liverpool have the strength, experience and staying power that the other clubs around us don't.
"What makes me optimistic is a look at the remaining fixtures. Liverpool, for example, still have to travel to both Arsenal and Manchester United while we have faced the top three away.
"We do have to go to Liverpool on the season's final day and while it could all rest on that one, it could also be that we go to Anfield with a four point lead or greater on May 15 and render the match academic."