June quarter production and sales were in line with expectations. The company continues to progress Dorado, Barossa and the Moomba carbon capture/storage project. Infill drilling is also being considered to extend the Bayu-Undan field life.
Macquarie believes each of these growth options will be critical to re-evaluating any upside potential in the stock relative to the sector.
Neutral maintained. Target is increased by 5% to $5.80.
Sector: Energy.
Target price is $5.80.Current Price is $5.58. Difference: $0.22 – (brackets indicate current price is over target). If STO meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
