Citi has downgraded Australia’s Woodside Energy (ASX:WDS) to ‘sell’ from ‘neutral’, with the price target maintained at A$33 per share.

Despite affirming Woodside as a well-run and high-quality business, the brokerage deems it ‘expensive’.

There are also ongoing concerns about the Scarborough project’s environmental approvals, and future unrest from non-government organizations.

Woodside’s CEO asserted earlier this week that there are ongoing constructive negotiations with unions over a potential industrial action at its liquefied natural gas facilities in Australia.

According to Citi, such industrial actions pose minimal risks to the company’s earnings.

Although strikes seem likely, their impact on production appears negligible.

Among 17 analysts, eight rate the stock ‘buy’ or higher, six ‘hold’ and three ‘sell’; their median price target is A$38.25, as per Refinitiv data.

Woodside’s stock has increased by 7.4% as of the most recent closing.

Woodside Energy is a prominent Australian energy company involved in the exploration, production and processing of hydrocarbons.