Morgan Stanley assesses Santos has delivered steady third quarter production results. Realised LNG prices continue to improve due to higher spot sales and GLNG has benefitted from rising LNG production due to higher third-party gas.
The broker expects the company will outperform peers in 2022. The Overweight rating and target price of $8.60 are retained. Industry view: Attractive.
Target price is $8.60.Current Price is $7.20. Difference: $1.40 – (brackets indicate current price is over target). If STO meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).