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  • Santos share price jumps to fresh multi-year high: Here’s what brokers tip next

    Smiling oil worker in front of a pumpjack.

    The Santos Ltd (ASX: STO) share price has jumped higher in Wednesday afternoon trade.

    At the time of writing, the shares are up around 2% for the day, at a 12-year high of $9.04 a piece.

    Today’s increase follows four consecutive days of share price gains. The shares are now up around 6% over the past week alone, and have rallied 47% for the year to date.

    What has driven such strong share price gains for Santos this year?

    ASX energy shares have flown higher in 2026 as ongoing geopolitical tensions in the Middle East push oil prices close to record highs.

    Continued disruptions to the movement of oil out of the region pushed global oil prices above US$110 a barrel earlier this year, and after a brief drop around July, renewed conflict has seen oil prices surge again in October.

    Santos directly benefits from high oil prices because it lifts both its revenue and profit margin.

    The share price rally has also been supported by Santos’ strong half-year FY26 results announcement in August.

    The major ASX oil and gas giant reported a 2% year-on-year increase in sales revenue and a 1.7% increase in production volumes. The company also generated free cash flow from operations, driven by strong base business performance.

    Why is the share price spiking again this week?

    There isn’t any company specific price-sensitive news this week to explain the latest Santos share price rally.

    The latest increase is mostly likely a result of another strong rebound in oil prices this week.

    Trading Economics data shows that crude oil climbed above US$95 per barrel today, marking its fifth consecutive session of gains. Escalating conflict between Iran and Saudi Arabia this week has caused even more oil supply disruptions and tankers transiting the Strait of Hormuz are being targeted.

    Crude oil prices are now 63% higher than just 12 months ago.

    Are the shares a buy, sell, or hold?

    The data on Market Index was updated just yesterday, and it still shows that even after the latest rally, brokers are still very positive on Santos shares.

    All brokers have a strong buy rating. Although the average target price of $9.04 is exactly flat on where the shares are trading at the time of writing.

    The data on TradingView shows a little more insight. The majority (14 out of 17) of analysts have a buy/strong buy rating on the shares. But the average $9.24 target price implies around a 2% upside ahead, at the time of writing.

    But the range between the minimum and maximum is huge. Some think the shares have the potential to jump another 22% to $11 over the next 12 months. But others think the Santos share price could sink 22% to $7.07.

    My view on the Santos share price

    Oil price volatility aside, I think Santos still presents great growth potential over the next 12 months. 

    The oil and gas major is in the process of transitioning from a period of heavy capital expenditure to active production. It is heavily reliant on two massive multi-billion dollar developments, including its Barossa LNG Project in the Northern Territory and its Pikka Phase 1 Project in Alaska.

    Continuous production at Pikka commenced in June and it is fast progressing to full production. Just last month, Santos announced that it had successfully started seawater injection at its Nanushuk Drillsite-B (NDB) within the project.

    Santos expects its second-half FY26 production to be 20% to 30% higher than the first half, and the ramp-up production at Pikka could certainly help that goal be achieved (or even exceeded).

    The post Santos share price jumps to fresh multi-year high: Here's what brokers tip next appeared first on The Motley Fool Australia.

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    Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. 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 Scott Phillips.

  • Down 44%: Will you regret not buying Pro Medicus shares?

    A female scientist in a laboratory setting using a tablet to review data, with a male scientist working in the background.

    Pro Medicus Ltd (ASX: PME) shares have had a difficult year.

    The medical imaging technology company’s shares are down another 3% to around $160.76 on Wednesday, taking their decline over the past 12 months to approximately 44%.

    That is a significant fall for a business that has spent years delivering impressive growth.

    But could this be an opportunity investors look back on with regret?

    Why I remain positive on Pro Medicus shares

    One reason I have always liked Pro Medicus is the importance of its technology to modern healthcare.

    Its Visage imaging platform helps radiologists access and analyse medical images quickly, making it easier to manage increasingly complex workloads.

    As hospitals handle more scans and medical imaging technology becomes more sophisticated, I think the need for efficient software will only increase, especially with radiologists in short supply.

    Pro Medicus has already established a strong position in the United States, where it supplies some of the country’s leading healthcare institutions.

    But there is still plenty of room to expand. Management estimates that Pro Medicus has around 11% of the US market, leaving a substantial opportunity to win customers from competing systems.

    Its existing customer relationships are another strength. Replacing medical imaging software is a major undertaking for hospitals, which need reliable systems that integrate with their clinical operations.

    Pro Medicus demonstrated the strength of those relationships in FY26, renewing all six customer contracts that came up for renewal, with higher fees per transaction.

    For me, that provides encouraging evidence of the value customers place on its technology.

    Plenty of growth still to come

    The company’s latest financial results also suggest its underlying business continues to perform well. In FY26, revenue increased 22.9% to $261.7 million, while underlying net profit rose 24.1% to $144.7 million.

    I think that is an impressive result, particularly given the company’s already substantial profit margins.

    But what interests me more is the business Pro Medicus has secured for the coming years.

    During FY26, it announced 10 new contracts worth at least $407 million, including major agreements with US healthcare providers. As these contracts are implemented, they should make a growing contribution to revenue.

    There are also opportunities to expand beyond traditional radiology imaging. Pro Medicus has been making progress in cardiology and recently launched new digital pathology and AI-related reporting products.

    I think these developments could help the company win additional work from existing customers while opening up new markets.

    And with a debt-free balance sheet, Pro Medicus has the financial flexibility to keep investing in its technology.

    Foolish takeaway

    I think Pro Medicus shares could prove to be an excellent buy at current levels.

    There is still a premium valuation attached to the business, and I would be prepared for further share price swings.

    But looking five or ten years ahead, I believe Pro Medicus has a genuine opportunity to become a much larger healthcare technology company.

    At around $161, I would be happy to buy shares and give that growth story time to unfold.

    The post Down 44%: Will you regret not buying Pro Medicus shares? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Global miner Glencore has just joined the ASX. So what’s it worth?

    Mining vehicle at a mine site.

    Global mining heavyweight Glencore Plc (ASX: GLC) has joined the ASX, with broker Canaccord Genuity weighing in on what the company’s shares are worth.

    The shares slipped shortly after beginning trade on the ASX, falling from $11.27 to $11.19, and well shy of CG’s price target for the company, which I’ll get to shortly.

    First, let’s have a look at the company itself.

    Major diversified miner with a difference

    Glencore is quite different from Australia’s two major miners, BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO), in that it still has a large exposure to coal, and also has a commodity trading arm, which, according to CG, “has no direct equivalent among the ASX mining majors”.

    It also has negligible iron ore exposure while it does have a focus on copper.

    Given the size of the company, CG said it was likely to be included in the S&P/ASX 200 Index (ASX: XJO) in March next year, and could also be included in the S&P/ASX 100 Index (ASX: XTO) at that time, although that inclusion was more likely to come later in the year.

    CG said the listing on the ASX made strategic sense for Glencore, as it would make future acquisitions easier, broaden the company’s shareholder base, and “improve investor access in a market with deeper resources-sector expertise and greater appetite for mining sector exposure than the London Stock Exchange”.

    CG added:

    Overall, Glencore’s addition to the ASX will give investors greater choice within the resources sector, adding a global top-10 miner by market capitalisation with highly sought-after copper exposure and a distinctive earnings profile. Glencore combines a diversified global mining portfolio, spanning future-facing metals such as copper and zinc, as well as metallurgical and thermal coal, with one of the world’s largest commodity marketing businesses. Its Marketing arm trades physical commodities produced by both its own mines and third-party producers. That combination sets Glencore apart from the incumbent ASX major diversified miners, which lack comparable large-scale commodity trading businesses, have largely exited coal and remain materially exposed to iron ore.

    CG said copper was “comfortably” Glencore’s largest earnings contributor, accounting for 46% of its industrial earnings, excluding the marketing segment.

    CG added:

    Healthy production growth from the company’s base portfolio is forecast to lift copper’s share of group EBITDA to 54% by FY30. By then, Glencore expects to have established itself as a top-five global producer, with a projected first-quartile total cash cost position.

    CG said if Glencore executes well on its copper expansion plans, there was scope for material broker upgrades.

    CG itself has a price target of $12.90 on Glencore shares.

    The post Global miner Glencore has just joined the ASX. So what's it worth? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Cameron England has no position in any of the stocks mentioned. 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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