The Santos Ltd (ASX: STO) share price has surged 28% year to date, but could it climb higher?
Santos shares are currently trading at $8.10, a 1.12% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.07% at the time of writing.
Let’s take a look at the outlook for Santos.
Could the Santos share price go higher?
The Santos share price is climbing today despite sliding oil prices. At the time of writing, the Brent crude oil price has slipped 2.22% to US$100.50 a barrel, according to Bloomberg. Meanwhile, the WTI crude oil price has dropped 2.37% to US$95.93 a barrel.
Woodside Petroleum Limited (ASX: WPL) shares are also 1.23% in the red at the time of writing.
However, according to Tribeca Investment Partners, Santos is “undervalued”.
In fact, Tribeca sees the company as the number one oil company on the ASX. In an interview with Livewire, Tribeca’s lead portfolio manager Jun Bei Liu said Santos is a company that is very attractive in the energy sector:
We think the business has been significantly undervalued given how much the oil price has gone up.
And also because of what it’s doing in that whole decarbonization space, that is incredibly valuable. So that’s our number one pick for the oil space.
Morgans recently named Santos as a share to add with a $9 price target. The broker expressed positivity on the company’s diversified earnings base and the resilience of the company’s growth profile.
Share price snapshot
Santos shares have gained 14% in the past 12 months, while they have climbed almost 6.5% in the past month.
In contrast, S&P/ASX 200 Index (ASX: XJO) has returned around 7% in the past 52 weeks.
In the last week, Santos shares are 2.3% higher.
Santos has a market capitalisation of about $27.3 billion based on the current share price.
The post With oil prices surging in 2022, are Santos shares now ‘significantly undervalued’? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Santos right now?
Before you consider Santos , you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Santos wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- 5 things to watch on the ASX 200 on Monday
- What’s impacting the Santos share price on Friday?
- Black gold! Here’s how well ASX energy shares performed over the March quarter
- 5 things to watch on the ASX 200 on Thursday
- Broker names 3 more of best ASX 200 shares to buy in April
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3dO6A5Z
Leave a Reply