The Woodside Petroleum Limited (ASX: WPL) share price has been a strong performer in recent weeks.
For example, since the end of August, the energy producer's shares have risen a sizeable 28%.
Why is the Woodside share price up 28% in five weeks?
There have been a couple of catalysts for the rise in the Woodside share price over the last five weeks.
Chief among them is a rise in oil prices. Due partly to supply disruptions following Hurricane Ida in the Gulf of Mexico, oil prices hit multi-year highs this week.
Also giving the Woodside share price a boost was news that it will be merging with the petroleum assets of BHP Group Ltd (ASX: BHP).
Can its shares keep rising?
The good news is that one leading broker believes Woodside's shares can keep rising from here.
According to a note out of Morgans, its analysts have an add rating and $29.00 price target on its shares.
Based on the current Woodside share price of $25.04, this implies potential upside of 16% over the next 12 months.
Why is the broker bullish?
Morgans is bullish on the Woodside share price due largely to its merger with BHP's petroleum assets.
It notes that this transforms Woodside and makes it a top 10 global energy producer.
The broker commented: "We believe WPL has benefited from being in the right place, at the right time. With: 1) BHP/WPL having an existing relationship, 2) BHP eager to boost its ESG profile, and 3) WPL being a quality operator (safe hands which is important for BHP). From an economic standpoint we think WPL is clearly getting the better of the deal, with synergies not baked into deal metrics and BHP willing to accept a discount. The deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves, with EBITDA of US$4.7bnpa and growth options."
