After developing a detailed valuation of Woodside Petroleum to incorporate the Petroleum business acquired from BHP Group ((BHP)), UBS arrives at an unchanged $29 target price.
The broker points out the portfolio mix shifts to 29% oil and condensate post merger from 19%, and now offers greater leverage to higher oil prices.
The analyst retains a Buy rating though notes Woodside Petroleum is trading at the highest implied oil price price across UBS’ coverage of the sector.
Sector: Energy.
Target price is $29.00.Current Price is $32.13. Difference: ($3.13) – (brackets indicate current price is over target). If WPL meets the UBS target it will return approximately -11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
