Credit Suisse believes Woodside Petroleum is likely to emerge with a fully funded growth profile after the merger with BHP Group’s ((BHP)) petroleum division. This could mean the business attracts more investors into Australia as a viable alternative energy exposure to Santos ((STO)).
The primary driver of the merger is also the de-risking of Scarborough. Credit Suisse continues to envisage value in Woodside Petroleum and maintains an Outperform rating, reducing the target to $27.65 from $27.95.
Sector: Energy.
Target price is $27.65.Current Price is $20.53. Difference: $7.12 – (brackets indicate current price is over target). If WPL meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
