Woodside Energy Group Ltd (ASX: WDS) shares are having a good start to the week.

At the time of writing, the ASX 200 energy stock is up 1.5% to $25.42.

While this gain is positive, it pales in comparison to what might lie ahead for its shares according to one leading broker.

Woodside shares tipped to rise

According to a recent note out of Morgans, its analysts think that Woodside is the best ASX 200 energy stock to buy right now.

In order of preference, the broker rates Woodside first, Karoon Energy Ltd (ASX: KAR) second, Beach Energy Ltd (ASX: BPT) third, and Santos Ltd (ASX: STO) fourth.

The broker currently has an add rating and $33.00 price target on Woodside's shares. Based on its latest share price, this implies potential upside of 30% for investors over the next 12 months.

To put that into context, a $5,000 investment would turn into approximately $6,500 by this time next year if Morgans is on the money with its recommendation.

Commenting on the sector, the broker recently said:

Oil demand is tracking modestly ahead of expectations, while robust supply is failing to keep pace. We expect the oil market to enter a deficit supply balance during 2H 2024. The oil market may be pricing in some demand destruction, but if that does not materialise, we expect Brent oil to recover to >$80/bbl in the next 1-3 months. Forced ranking of our oil-exposed coverage at current share prices: #1 WDS, #2 KAR, #3 BPT, and #4 STO.

Why Woodside?

Morgans believes that Woodside shares offer attractive long-term value for patient investors. Particularly given how the market appears to be undervaluing them at present. It said:

The tide is certainly out in terms of investor sentiment on WDS. Despite Brent oil trading in line with our long-term forecast, WDS' share price implies a near cycle-low oil price level. We do not see this as capable of being explained by WDS' growth profile (comfortably funded) or risks around non-core assets such as Browse.

While the share price performance has been disappointing, supported by a strong balance sheet and high margins, we see WDS investors as capable of being patient. Investment view: We maintain an ADD recommendation believing WDS offers attractive long-term value.

It is also worth noting that Morgans expects some good dividend yields from the energy giant in the near term.

It is forecasting fully franked dividends of approximately $1.83 per share in FY 2024 and then $1.52 per share in FY 2025. This equates to yields of 7.2% and 6%, respectively.