The broker retains a Hold rating on Woodside Petroleum, but is cautious as there are many questions that remain unanswered. Does Woodside buy Chevron’s North West Shelf stake, now on offer?
The broker thinks as operator, Woodside will be interested, but how will it pay for it? The broker rates a capital raising as “probable”.
Are Woodside’s partners confident enough at current oil/LNG prices to proceed? And how will investors react to falling dividends?
A slight pushback on Sangomar starting up lifts the broker’s target to $22.90 from $22.56, but “cautious” Hold retained.
Target price is $22.90.Current Price is $21.94. Difference: $0.96 – (brackets indicate current price is over target). If WPL meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).