WDS - Woodside Energy: Raising To A Buy On Relative Valuation

2024-05-06 02:16:13 ET

Summary

• Woodside Energy Group is Australia's leading independent E&P with a large LNG business.
• The company's share price is approaching a long-term support level, which may present a buying opportunity.
• WDS's recent stock weakness could be due to the stock's stagnant growth profile. However, this is expected to change once the Scarborough LNG project comes online in 2026.

In December, I warned readers that I had moved to the sidelines on Woodside Energy Group ( WDS ), as the stock had broken below my stop loss level, suggesting more downside was forthcoming.

So far, my caution has been correct, as Woodside's shares have continued to sell off. Despite a global rebound in energy companies in the last few months, WDS shares have returned -6% in total returns since my update (Figure 1)....

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