First quarter production was slightly softer than Morgans expected. The broker retains some issues with the company’s recent decisions but continues to like the earnings profile of the mostly mature projects.
The broker considers expansion of the WA-based LNG operations is likely to be the right move given the fundamentals which support the market for the next decade. Hold rating maintained. Target is reduced to $30.69 from $30.99.
Sector: Energy.Target price is $30.69.Current Price is $30.72. Difference: ($0.03) – (brackets indicate current price is over target). If WPL meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).