*****TRADING IDEA: Woodside Petroleum – BUY*****
Woodside Petroleum (ASX: WPL) has just completed the institutional component of their capital raising, successfully raising $1.57 billion, with over 90% of eligible institutions taking up the offer at $27.00 per share. The retail entitlement offer is still underway. The stock has dipped after coming back on trading, which was to be expected, and presently trades at around $28.80 per share. The raising was to fund Woodside’s buyout of Exxon’s stake in the Scarborough gas field and looks to be a win-win.
Our research analysts currently have a BUY recommendation on the stock with a target price of $34.00 Our analysts believe Woodside has quality assets, an ongoing focus on cost reduction, a strong balance sheet, strong cash flow, potential exploration along with a quality management team and a solid long term strategy. The stock was trading at around $34.50 in mid-January this year, and despite the recent dip in share price, we see good value in the stock and a good opportunity to buy at current levels.
The stock is due to pay a dividend of 61.84 cents per share, fully franked, on 22 February 2018. If you purchase the shares prior to 22 February – you will be entitled to receive this dividend payment. Current annual yield for the stock is around 4.27% at current levels.
Please also see below a summary of other analysts’ recommendations on the stock. There are certainly plenty of analysts out there who see potential upside in the stock.
Other Broker Recommendations:
Goldman Sachs BUY Target $37.50
UBS BUY Target $35.30
Shaw & Partners BUY Target $37.00
Morningstar BUY Target $39.55
Evans & Partners BUY Target $37.50
Morgans HOLD Target $30.99
If you would like to discuss purchasing / topping up your holding in Woodside, please don’t hesitate to give your adviser a call any time on 07 5520 8788.WPL