Woodside Energy: Undervalued LNG Powerhouse With Large Stock Price Upside Potential

2025-09-11 06:20:52 ET

I assign a BUY rating to Woodside Energy ( WDS ) stock (for an active investor profile) with a 12-month price target of $20.55-$26.05 [technical] and $28.97 (36 months+ target) [modelling-based]. Theoretically, the current WDS stock price is materially undervalued relative to the forward cash flow potential of its LNG growth pipeline (including the Scarborough and Louisiana LNG projects). What I see is that the market is fixated on near-term balance sheet issues as observed in gearing at the top of its target 10-20% range, but it is overlooking the strategic de-risking attained through the $5.7 billion Stonepeak deal and possible increased production and revenue post-2026. The growth here is in line with solid long-term global LNG demand, and project progress at Sangomar provides a strong precedent for forward delivery....

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