WDS
Quick question, do you think WDS has bottomed around $23.50 as it seems to be holding support despite oil price weakness (noting WDS is heavily exposed to LNG). Thanks, Bernie
The Latest Q&A
Answer
No change to our view from late October:
Market heavyweight WDS has declined almost 22% year-to-date, but some buying has resurfaced into the current weakness. We expect WDS will continue to payout 80% of profits, implying an FY24 div yield of over 8%, but falling toward 5% by FY26 with capex bills on the horizon. Hence, we don’t see it as the exciting yield play as looking at the “now,” would suggest.
- We can see WDS trading between $23 and $27 over the coming 3-6 months. Hence its in an accumulation zone at present.
