December quarter production was broadly in line with UBS. Capital expenditure was higher than the broker expected, attributed to delayed start up of Wheatstone.
UBS believes the market is underestimating the positive catalysts for the company in 2018 and the dividend leverage to the oil price, as well as over-estimating the risks to Pluto LNG re-pricing. Buy rating maintained. Target slips to $38.00 from $38.10.
Target price is $38.00.Current Price is $33.35. Difference: $4.65 – (brackets indicate current price is over target). If WPL meets the UBS target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).