UPDATE: Two leading energy shares listed on the ASX 200 have just received critical upgrades from Morgans, prompting investors to pay close attention. Analysts have upgraded both Karoon Energy Ltd (ASX: KAR) and Woodside Energy Group Ltd (ASX: WDS) to ‘Buy’ ratings, signaling a potential surge in their stock values.
In a significant move, Morgans has given Karoon Energy a price target of A$1.80, indicating a potential upside of 17% over the next twelve months. The upgrade follows the release of the company’s quarterly update, which highlighted a strengthening balance sheet despite temporary production challenges at its Bauna field. Morgans emphasized that while Bauna faced outages affecting 3Q volumes, the overall pricing and cash flow remain robust.
The broker stated:
“Management has done a good job operating Bauna, but some risks cannot be mitigated in an ageing field. Balance sheet strength is improving fast with net debt down US$89 million quarter-on-quarter. We upgrade to BUY from HOLD.”
Meanwhile, Woodside Energy also received a boost, with a new target price set at A$30.50. This suggests a possible 25% upside for investors in the coming year. The upgrade comes after a strong operational and sales result for Q3 2025 and the announcement of a joint venture with US midstream player Williams in Louisiana, which Morgans views as a strategic move to reduce execution risk.
Morgans notes:
“Given the magnitude of execution risk Woodside faces at Louisiana, we appreciate the strategy to de-risk infrastructure and feedgas delivery. It is little surprise Woodside shares are gaining support.”
Investors are encouraged to act quickly, as these developments could influence market dynamics and stock performance in the energy sector.
As October 2023 progresses, the energy market shows signs of volatility, making now an opportune moment for investors seeking exposure to these ASX 200 shares. Keep an eye on further updates as these companies continue to navigate their operational challenges and market opportunities.
Stay tuned for the latest developments in the energy sector as Morgans and other analysts provide ongoing assessments of these stocks and their potential in the fast-evolving market landscape.
