The substantial fall in spot oil has meant prices are close to break-even levels for Woodside Petroleum and Macquarie observes resolving the supply uncertainty is now the clear catalyst.
At current prices, the broker considers the growth options available to Australian producers may be deferred to protect balance sheets. Outperform rating and $33 target maintained.
Sector: Energy.
Target price is $33.00.Current Price is $20.39. Difference: $12.61 – (brackets indicate current price is over target). If WPL meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges – negative figures indicate an expected loss).
