Should you load up on Woodside shares?

Let's see what analysts are saying about the energy giant.

Woodside Energy Group Ltd (ASX: WDS) shares have been having a tough time this year.

Due largely to falling oil prices, the energy giant's shares are thoroughly underperforming the market.

For example, since the start of 2024, the Woodside share price has lost approximately 13% of its value. As a comparison, the ASX 200 index is up 3% over the same period.

But given that Woodside is widely regarded as one of the highest quality companies in the global energy space, is this underperformance your cue to load up on its shares?

Let's see what analysts are saying about the company and its shares right now.

Oil worker using a smartphone in front of an oil rig.

Image source: Getty Images

Should you load up on Woodside shares?

A number of brokers see significant value in the company's shares at the current level.

For example, even Macquarie, which has a neutral rating on its shares, has a price target of $32.00, implying 18% upside for investors over the next 12 months.

Elsewhere, Morgan Stanley recently put an overweight rating and $35.00 price target on Woodside's shares. This suggests that they could rise by almost 30% between now and this time next year.

And over at Morgans, its analysts see even more value on offer. The broker has an add rating and $36.00 price target, which implies potential upside of 33% for investors from current levels.

In addition, Morgans is forecasting a 4.6% dividend yield in FY 2024, boosting the total potential return to almost 38%.

The broker believes that recent share price weakness has created an opportunity for investors to buy a high quality ASX stock at a great price. It said:

WDS's share price has been under pressure in recent months from a combination of oil price volatility and approval issues at Scarborough, its key offshore growth project. With both of those factors now having moderated, with the pullback in oil prices moderating and work at Scarborough back underway, we see now as a good time to add to positions.

Increasing our conviction in our call is the progress WDS is making through the current capex phase, while maintaining a healthy balance sheet and healthy dividend profile. WDS still has to address long-term issues in its fundamentals (such as declining production from key projects NWS/Pluto), but will still generate substantial high-quality earnings for years to come.

All in all, this could make it a great option for investors. Especially those that are wanting exposure to the energy sector.

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

Couple on their laptop in their home kitchen.
Energy Shares

Beach Energy posts record Q1 sales revenue and higher production

Beach Energy posts record Q1 sales revenue and higher production, with cash flow risks easing after major project milestones.

Read more »

A person bounces another up high from a seesaw as the one in the air looks through a telescope into the future.
Resources Shares

2 ASX stocks down 28% to 30% in a month I'd buy right now

Both of these ASX stocks are expected to rebound strongly over the next 12 months.

Read more »

male worker in hi-vis checking the balance of the hydrogen tanks
Energy Shares

Meridian Energy posts record Q1 hydro generation in FY27 update

Meridian Energy posts record first quarter hydro generation for FY27 and keeps investment plans on track.

Read more »

a uranium-fuelled mushroom shaped cloud explosion surrounded by a circle of rainbow light with a symbol of an atom to one side of it.
52-Week Lows

I think this ASX share is a bargain buy after hitting a 52-week low: Here's why

Brokers tip a rebound ahead. But by how much?

Read more »

Smiling oil worker in front of a pumpjack.
Energy Shares

$10,000 invested in Woodside shares 12 months ago is now worth…

Woodside shares have had a successful 12 months.

Read more »

Young mother with baby boy at the petrol station refuelling the car.
Energy Shares

Ampol posts 3Q26 EBIT growth and surging refinery margins

Ampol's 3Q26 update shows robust EBIT growth and surging refinery margins, as the group advances EV strategy and retail integration.

Read more »

Woman working on her laptop at a café.
Energy Shares

Origin Energy vs Woodside Energy: Which ASX 200 share is more likely to beat the market?

Origin Energy and Woodside Energy compared: dividends, valuation, recent momentum, and my take on which ASX energy stock could beat…

Read more »

Smiling oil worker in front of a pumpjack.
Energy Shares

Contact Energy: September 2026 monthly operating results

Contact Energy’s latest monthly report shows higher sales and major renewable projects moving forward.

Read more »