Morgan Stanley Reiterates Hold Rating on Woodside Energy Group with $26 Price Target

Morgan Stanley analyst Robert Koh maintains a Hold rating on Woodside Energy Group with a price target of A$26.00. Koh covers the Energy sector, focusing on stocks such as Origin Energy Limited, Ampol Limited, and Santos Limited. Woodside Energy Group reported a quarterly revenue of A$7.19 billion and a net profit of A$1.64 billion for the quarter ending December 31. Corporate insider sentiment is negative on the stock, with an increase in insiders selling their shares over the past quarter.

Woodside Energy Group Ltd (WDS) reported its second-quarter (2Q) production at 50.1 million barrels of oil equivalent (MMBOE), a significant increase from the previous quarter. The company's strong production figures come amidst mixed analyst sentiment and increased institutional investment in the stock.

According to the latest earnings release, Woodside Energy Group's 2Q revenue was A$7.19 billion, up from A$6.59 billion in the same period last year. The company's net profit improved to A$1.64 billion from a net loss of A$80 million in the previous year [1]. Despite the positive earnings, the company's stock has been trading down, reflecting a mixed analyst sentiment.

Adrian Prendergast from Morgans maintained a Buy rating on Woodside Energy Group with a price target of A$31.00, while RBC Capital also kept a Buy rating with a price target of A$32.50 [1]. However, Macquarie downgraded the stock to a Hold rating, and CLSA raised it to a Strong Buy rating, indicating a mixed analyst sentiment [2]. As of July 2025, the stock has an average rating of Hold among analysts.

Institutional investors have shown increased interest in Woodside Energy Group. Massachusetts Financial Services Co. (MA) boosted its stake by 24.9% in the first quarter, and several other hedge funds and institutional investors have raised their stakes in the company [2]. This increased institutional investment may provide support to the stock, despite the mixed analyst sentiment.

Woodside Energy Group's recent corporate insider activity also reflects a negative sentiment, with an increase in insider selling during the past quarter [1]. This could indicate that insiders are anticipating potential headwinds for the company.

In conclusion, Woodside Energy Group's strong 2Q production figures are a positive development, but the mixed analyst sentiment and increased institutional investment may provide a balanced outlook for the stock. Investors should closely monitor the company's earnings and analyst ratings to make informed decisions.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/WDS-N/pressreleases/33451981/morgans-sticks-to-its-buy-rating-for-woodside-energy-group-wds/
[2] https://www.marketbeat.com/instant-alerts/filing-massachusetts-financial-services-co-ma-increases-stake-in-woodside-energy-group-ltd-nysewds-2025-07-20/