Woodside Energy's 1Q production missed forecasts by consensus and Morgans by -3%, while revenues were broadly in line with expectations.

The broker highlights a disconnect between the Woodside share price (down -1% since October) and the oil price (Brent up 2%), as well as the share price of smaller peer Santos ((STO)). It's felt Woodside's fundamentals have improved in this period.

The current multiple discount to Santos doesn't tally with Woodside's materially higher earnings power, stronger balance sheet and higher quality asset portfolio, according to Morgans.

The Add rating is maintained and the target eases to $36 from $36.20.

Sector: Energy.

Target price is $36.00.Current Price is $28.57. Difference: $7.43 - (brackets indicate current price is over target). If WDS meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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