Ord Minnett tips Woodside shares to rise 15%+

Now could be a good time to buy Woodside Energy Group Ltd (ASX: WDS) shares.

That's the view of analysts at Ord Minnett, which believe that the energy giant could be in the buy zone right now.

In fact, the broker believes that market-beating returns could be on offer for those that buy at current levels.

Buy Woodside shares

According to a recent note, the broker has put a buy rating and $25.00 price target on its shares.

Based on where they currently trade, this implies potential upside of 17% for investors over the next 12 months.

In addition, a dividend yield in the region of 6% is expected by the market in FY 2025. If this proves accurate, it will boost the total potential return beyond 23%.

Ord Minnett labelled Woodside shares as a buy this week. It told The Bull the following:

First quarter production of 49.1 million barrels of oil equivalent in fiscal year 2025 was down 4 per cent on the fourth quarter of fiscal year 2024. This was due to weather impacts at the North West Shelf and unplanned outages at Pluto. The Scarborough Energy project remains on track for first LNG cargo in the second half of 2026.

Woodside recently approved the Louisiana LNG development and is targeting first LNG in 2029. The company sustained production guidance of between 186 million and 196 million barrels of oil equivalent for full year 2025. The hard work appears to be done on a strategy reset. The company's outlook is brighter.

Another bull

It isn't just Ord Minnett that is bullish on Woodside shares. Morgans recently put an add rating and $30.10 price target on them.

This suggests that even greater upside of 40% is possible between now and this time next year. It said:

The tide is certainly out in terms of investor sentiment on WDS. Despite Brent oil trading in line with our long-term forecast, WDS' share price implies a near cycle-low oil price level. We do not see this as capable of being explained by WDS' growth profile (comfortably funded) or risks around non-core assets such as Browse. While the share price performance has been disappointing, supported by a strong balance sheet and high margins, we see WDS investors as capable of being patient. Investment view: We maintain an ADD recommendation believing WDS offers attractive long-term value.

In light of this, it could be worth considering the energy giant if you are looking for exposure to this side of the market.

The post Ord Minnett tips Woodside shares to rise 15%+ appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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