Macquarie believes the proposal for Browse tolling through the North West Shelf and Pluto expansion projects could potentially lift production in the 2020s but more work needs to be done to underpin this.
The broker believes the Pluto expansion is likely, given the upside, but remains cautious about third-party tolling because of the need for unanimous consent among the joint-venture partners. Neutral maintained. Target rises to $31.50 from $30.00.
Target price is $31.50.Current Price is $33.27. Difference: ($1.77) – (brackets indicate current price is over target). If WPL meets the Macquarie target it will return approximately -6% (excluding dividends, fees and charges – negative figures indicate an expected loss).