Energy analysts at Citi have increased price expectations for cude oil and LNG. The 2021 Brent oil price forecast moved to US$59/bbl from US$52/bbl. The team sees oil peaking at US$61/bbl in 1Q22.
The offsetting observation is that, on a long-term horizon, Citi analysts believe most share prices in the sector are relatively fairly valued. They also suggest the sector overall is likely to remain well supported for the near term.
The new price target for Santos, $7.58 compares with $7.34 previously. Rating has been downgraded to Neutral from Buy.
Sector: Energy.
Target price is $7.58.Current Price is $7.42. Difference: $0.16 – (brackets indicate current price is over target). If STO meets the Citi target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
