S& 500 rise on U.S.-Japan trade deal optimism; Tesla, Alphabet earnings due
JPMorgan downgraded Woodside (OTC:WOPEY) Energy Group Ltd (NYSE:WDS) from Overweight to Neutral on Thursday, lowering its price target to AUD23.90 from AUD26.80.
The investment bank cited "heightened execution risk" as Woodside advances various growth projects while attempting to diversify away from traditional upstream oil and gas operations.
JPMorgan specifically highlighted concerns about the Louisiana LNG project, noting its profitability depends on the spread between Henry Hub and global gas benchmarks after 2030.
The firm pointed out that elevated capital expenditures associated with these development projects will likely continue to weigh on Woodside’s free cash flow throughout the remainder of the decade.
At the current share price, JPMorgan believes Woodside Energy shares are "priced fairly" given the balance of risks and potential rewards from its growth initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.