STO – UBS rates the stock as Buy

2020 underlying earnings were below UBS estimates because of higher corporate costs and a change in inventory. Nevertheless, the final dividend surprised to the upside with 34% of free cash flow being paid out in the second half.

Amid near-term growth catalysts, Santos remains the broker’s preferred energy exposure. Buy rating retained. Target is raised to $7.90 from $7.70.

Sector: Energy.

 

Target price is $7.90.Current Price is $6.82. Difference: $1.08 – (brackets indicate current price is over target). If STO meets the UBS target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →