In a report released today, Matt Chalmers from Bank of America Securities reiterated a Buy rating on Woodside Energy Group (WDS – Research Report), with a price target of A$27.10.
Matt Chalmers has given his Buy rating due to a combination of factors including Woodside Energy Group’s strong financial performance and strategic growth initiatives. The company reported a solid FY24 result with an underlying EBITDA of $9.28 billion, aligning closely with market expectations. Additionally, Woodside declared a final dividend that exceeded consensus estimates, indicating robust shareholder returns.
Furthermore, Woodside’s strategic focus on organic growth projects, such as the Scarborough and Trion developments, is expected to drive a 5% compound annual growth rate in production from 2024 to 2027. Despite higher depreciation and amortization assumptions, the company’s higher-than-anticipated cash balance has led to a slight increase in the price objective to $27.10 AUD. Chalmers anticipates a 13% total shareholder return over the next 12 months, supported by favorable market conditions for Brent crude and LNG prices.
In another report released today, Morgans also maintained a Buy rating on the stock with a A$30.25 price target.