UBS lifts Brent oil price forecast for 2021 to US$65.50/bbl, from US$57/bbl, and 2022 to US$62/bbl from US$60/bbl. Santos remains the preferred exposure across the energy sector with short-term growth catalysts.
Moreover, UBS believes the investment in carbon abatement via the Moomba CCS project aligns the company’s business plan with the proposed energy transition. Buy rating retained. Target is raised to $8.20 from $7.90.
Target price is $8.20.Current Price is $7.22. Difference: $0.98 – (brackets indicate current price is over target). If STO meets the UBS target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).