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Why’s Worley’s share price so low?

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Why’s Worley’s share price so low?

Hi Guys, It would seem that Worley (asx: WOR) stands to benefit through the shear heft of new projects globally as a result of the energy transition. It also seems to reason that as a mining and energy tech leader, Worley would also benefit from AI associated cutting of costs and improvement services and efficiencies. I see that one of the big banks also recently upgraded it to a BUY. So, what is the share price being consistently being beaten down? I've taken this as an opportunity to accumulate, but just trying to understand if there's something i'm missing? What are your view's on Worley over the coming 12 to 24 months and are you considering taking a position or adding to it here? Cheers

Answer

Hi Phillip,

Depends on the time frame one looks at, however, yes, in the short term, WOR has been soft. We think this is a function of the market being ‘full of WOR stock’ following the sell down from Sidara of their 19% stake. Institutions, both existing and new, bought stock in a block and pre-determined price, which was a discount to market. That creates a vacuum of on-market buying and shares tend to drift.

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Worley (WOR)
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