Regis Resources Ltd (ASX: RRL) shares are edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed on Friday trading for $7.09. In morning trade on Monday, shares are changing hands for $7.08 apiece, down 0.1%.

For some context, the ASX 200 is down 0.2% at this same time.

With today’s intraday moves factored in, Regis Resources shares remain up a remarkable 174.5% year to date, smashing the 5.1% gains delivered by the benchmark index.

The ASX 200 gold stock has been an obvious beneficiary of the soaring gold price. The yellow metal is currently trading for US$4,198 per ounce, up 60% in 2025. But the miner has hardly been sitting on its laurels.

Here’s what the company reported this morning.

Regis Resources shares eyeing growth prospects

The ASX gold miner has released its twice-yearly exploration update across its Duketon and Tropicana projects, both located in Western Australia.

Building longer-term support for Regis Resources shares, the miner said that over the half year it continued advancing priority underground and open pit targets, improving its geological confidence across key growth areas.

Management said they are now assessing longer-term opportunities within both operations, noting the company is evaluating and testing 100 exploration prospects and projects at varying stages of development.

Among the highlights of the past six months of exploration, Regis said strong drilling results at its Garden Well Underground project confirmed the continuity of mineralisation outside of the current mine designs. The miner said these results support ongoing assessment of deeper down-plunge extensions at the prospect.

And at the Rosemont Stage 3 Underground gold mine, Regis said its resource definition and extensional drilling continued to intersect multiple zones of high-grade mineralisation. This has extended the system some 300 metres beyond current designs and strengthened the medium-term underground growth potential at the mine.

What did management say?

Commenting on the exploration program that should support Regis Resources shares longer-term, CEO Jim Beyer said, “Our exploration teams continue to deliver solid progress across the business.”

He noted, “The work completed over the past six months has strengthened our understanding of the underground growth pipeline at Duketon and confirmed further extensions at Tropicana.”

Beyer concluded:

The team’s systematic approach is building confidence by providing a steady flow of opportunities to support future studies, Reserve conversion and long-term mine life planning. We are very encouraged by the results to date and see ongoing potential across our portfolio as drilling continues into the second half of FY 2026.

The post Regis Resources shares are up 175% in 2025. Here are the latest ‘very encouraging’ gold exploration results appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Up 170% this year, does Macquarie rate Regis Resources shares a buy, hold or sell?
• Here are the top 10 ASX 200 shares today
• Why Breville, Flight Centre, Navigator Global, and Regis Resources shares are racing higher
• Up 202% in a year, here’s why Regis Resources shares are rocketing again today

Motley Fool contributor Bernd Struben 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.

The companies that are in and out of key ASX indices have been announced, with the Gina Rinehart-backed Lynas Rare Earths Ltd (ASX: LYC) and Washington H. Soul Pattinson and Company Ltd (ASX: SOL) soon to join the S&P/ASX 50 Index (ASX: XFL).

The most recent rebalance of the ASX indices is set to take effect from December 22, with the additions and exclusions to each index important for funds that look to track those indices.

As such, an inclusion can be a boon for shareholders, while an exclusion can put downward pressure on a company’s share price performance.

With Lynas and Soul Patts to be included in the ASX 50, two companies, Amcor Plc (ASX: AMC) and Mirvac Group (ASX: MGR), will be removed.

China moves spur interest in Lynas

Lynas shares have been trading between $13 and $16 for the past month or so, after surging to a 12-month high of $21.96 in mid-October at a time when China flagged extra export controls on key rare earths elements.

The shares are still well up on the 12-month lows of $6.16, and Macquarie recently issued a research note maintaining its outperform rating for the stock, with a 12-month price target of $17. The shares closed Friday’s session at $14.14.

As for the S&P/ASX 100 Index (ASX: XTO), vehicle dealership owner Eagers Automotive Ltd (ASX: APE) will be included in the next rebalance, as will Capricorn Metals Ltd (ASX: CMM).

The $7.57 billion Eagers, in recent months, announced a major capital raise at $21 per share to help pay for its $1.04 billion 65% buyout of CanadaOne Auto Group, with the shares continuing to trade well above that level, last changing hands for $26.84.

Analysts have looked kindly on the CanadaOne purchase, with Macquarie in early November saying the “acquisition of CanadaOne provides a platform for further North American inorganic growth, in what is a highly fragmented market”.

At the time, Macquarie had a price target of $29.98 on Eagers stock.

As for Capricorn Metals, its shares are up more than 100% over the past 12 months, during which time it acquired its Mt Gibson gold project where it has grown the mineral resource estimate to 4.5 million ounces of contained gold.

The company also recently acquired Warriedar Resources for an equity value of $188 million.

To make way for Eagers and Capricorn, Reece Ltd (ASX: REH) and Reliance Worldwide Corporation Ltd (ASX: RWC) will be removed from the ASX 100.

There will be no changes to the S&P/ASX 20 Index (ASX: XTL) this time around.

The post See which companies have just been added to key ASX indices appeared first on The Motley Fool Australia.

More reading

• Guess which ASX mining stock was just promoted to the S&P/ASX 50?
• 2 ASX giants to buy for decades of growth and dividends
• Could this undervalued ASX stock be your ticket to millionaire status?
• Bell Potter names the best ASX 200 shares to buy in December
• 3 top ASX dividend share buys for passive income in December

Motley Fool contributor Cameron England has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended Amcor Plc, Macquarie Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DigiCo Infrastructure REIT (ASX: DGT) shares are starting the week in the red.

In morning trade, the ASX AI share is down 1% to $2.48.

What’s going on with this ASX AI share?

Investors have been selling the data centre operator’s shares today after broad weakness in the tech sector overshadowed the announcement of the appointment of its new CEO.

According to the release, the company has appointed Michael Juniper as the CEO of the DigiCo Infrastructure REIT and managing director of digital infrastructure for HMC Capital Ltd (ASX: HMC), with immediate effect.

The release notes that Juniper brings more than two decades of experience in digital infrastructure.

He was a founding executive and deputy CEO at AirTrunk, where he helped build one of Asia-Pacific’s leading hyperscale platforms. This includes expanding AirTrunk into major Asian markets including Japan, Singapore, Malaysia and Hong Kong, and partnering with the world’s largest cloud and technology companies.

The ASX AI stock revealed that the decision to appoint Juniper as CEO followed his appointment as a senior executive and director in September.

It highlights that his experience, relationships, and track record in this sector make him ideally placed to lead the company.

Commenting on his appointment, Michael Juniper said:

I am honoured to assume the role of Chief Executive Officer of DGT. DGT is uniquely positioned as Australia’s sovereign digital infrastructure platform, with strong foundations and a high-quality global portfolio. Demand from cloud, AI and GPU-led workloads is accelerating, and DGT is building a future-ready organisation that is required to support these next-generation requirements.

Innovative energy solutions are becoming critical differentiators for our customers, and DGT is uniquely placed to potentially leverage HMC’s broader energy and transition platform to deliver long-term power certainty and sustainable growth at scale across cloud, AI and enterprise workloads. I look forward to working closely with the Board, our customers, government and our talented team as we create value for our securityholders in our next phase of growth.

The ASX AI share’s chair, Joseph Carrozzi AM, was pleased with the appointment.

He believes that Juniper will able to deliver on the next phase of the DigiCo Infrastructure REIT’s strategy. Carrozzi said:

We are pleased with the appointment of Michael to lead the next phase of DGT’s strategy. His exceptional track record in building hyperscale platforms across the region makes him uniquely qualified to guide DGT through the growth ahead. We thank Chris for his leadership and contribution to DGT, having led the company through its IPO and foundation period as a listed entity. We look forward to his continued contribution in this important new government-facing role.

The post What’s going on with this ASX AI share on Monday? appeared first on The Motley Fool Australia.

More reading

• DigiCo Infrastructure REIT appoints new CEO and sets strategic growth path
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• What is Bell Potter’s view on REITs?
• 3 ASX shares I’d buy with $20,000 today

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

If you are wanting some exposure to the booming gold price, then read on!

That’s because the team at Bell Potter has identified as ASX 200 gold stock that it believes could rise very strongly from current levels.

Which ASX 200 gold stock?

The gold miner that Bell Potter is bullish on this month is Catalyst Metals Ltd (ASX: CYL).

Catalyst Metals is a mid-tier Australian gold miner and developer with 100% ownership of two key projects. These are the Plutonic Gold Operation in Western Australia and the Bendigo Gold Project in Victoria. Bell Potter highlights that these assets are located in highly prospective, low sovereign risk jurisdictions.

What is the broker saying?

Bell Potter has resumed coverage on the ASX 200 gold stock and is feeling very positive due to its 10-year growth strategy. It explains:

We see CYL as an emerging mid-tier gold producer in Western Australia, operating within a stable, low-risk jurisdiction. The Company is embarking on a 10-year growth strategy for its Plutonic Gold Operations (PGO), targeting a 200kozpa production rate. This will be achieved by developing five mines under a hub-and-spoke model and leveraging latent processing capacity at the 1.8Mtpa processing plant.

Production is anticipated to double from 100kozpa in FY26 to 200kozpa from FY29 (~28% CAGR), due to the forecasted increase in tonnes and grade (3.13g/t vs 2.27g/t in FY26) as higher grade mines come online. CYL remains debt free with no gold hedging contracts, allowing full exposure to gold price upside, particularly attractive in the current gold bull market.

Big potential returns

According to the release, the broker has put a buy rating and $9.30 price target on the ASX gold stock.

Based on its current share price of $6.55, this implies potential upside of 42% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

We recommence coverage of CYL with a BUY recommendation and a $9.30/sh TP. CYL is considered undervalued against its peers (EV/EBITDA 5.3x, FY26E/27E FCF yield of 1.5% to 7.1%). We view CYL as derisking the Plutonic gold hub with a clear line of sight to a 200kozpa steady state (FY29). Execution on the plan (five mines feeding an underutilised 1.8Mtpa plant) and Reserve growth towards >2Moz are viewed as the key drivers of multiple re- ratings and margin expansion.

The post Why this emerging ASX 200 gold stock could rise 40%+ appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Morgans names 3 ASX 200 shares to buy in November

Motley Fool contributor James Mickleboro 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.

The DigiCo Infrastructure REIT (ASX: DGT) share price drew attention today as the company announced Michael Juniper as its new CEO. Juniper’s appointment comes alongside a strategic management reshuffle and a continued focus on data centre expansion to meet rising demand for cloud and AI services.

What did DigiCo Infrastructure REIT report?

• Michael Juniper appointed Chief Executive Officer and Managing Director, Digital Infrastructure
• Chris Maher to transition to Managing Director, Group Head of Government & Strategic Programs for HMC Capital
• Ongoing development of next-generation data centre campuses in Australia and North America
• Portfolio of 13 data centres with 76MW installed and a 156MW development pipeline
• Strong focus on energy solutions to support future growth in cloud and AI services

What else do investors need to know?

DigiCo Infrastructure REIT highlighted the growing importance of government and regulatory engagement as policy on data, AI, and energy evolves. The transition of Chris Maher into a specialist government role is intended to strengthen DigiCo’s capabilities in navigating these changes.

Michael Juniper brings a notable track record, previously helping build AirTrunk into Asia-Pacific’s largest hyperscale platform. His appointment is expected to guide DigiCo through its next growth phase, particularly as demand for digital infrastructure and data capacity increases.

What did DigiCo Infrastructure REIT management say?

Michael Juniper, CEO and Managing Director, said:

I am honoured to assume the role of Chief Executive Officer of DGT. DGT is uniquely positioned as Australia’s sovereign digital infrastructure platform, with strong foundations and a high-quality global portfolio. Demand from cloud, AI and GPU-led workloads is accelerating, and DGT is building a future-ready organisation that is required to support these next-generation requirements.

What’s next for DigiCo Infrastructure REIT?

Under its new leadership, DigiCo plans to continue expanding its network of data centres across Australia and North America. The trust will further develop its capabilities in energy solutions, aiming to provide sustainable, long-term infrastructure for customers operating cloud and AI workloads.

The company is also prioritising close engagement with government and regulatory bodies to adapt to ongoing changes in the digital and energy sectors. This is expected to help DigiCo maintain momentum during its next phase of strategic growth.

DigiCo Infrastructure REIT share price snapshot

DigiCo Infrastructure REIT shares have declined 44% in the past 12 months, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen around 3% over the same period.

View Original Announcement

The post DigiCo Infrastructure REIT appoints new CEO and sets strategic growth path appeared first on The Motley Fool Australia.

More reading

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• Telix Pharmaceuticals updates investors as first patient is dosed in Phase 3 prostate cancer trial
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• Corporate Travel Management and Boss Energy shares dumped from ASX 200
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is in focus today after the company announced the first patient has been dosed in Part 2 of its ProstACT Global Phase 3 trial for treating advanced prostate cancer. The company also confirmed plans for a key Part 1 data readout and further regulatory engagement.

What did Telix Pharmaceuticals report?

• First patient dosed in ProstACT Global Phase 3 trial (randomised treatment expansion, Part 2)
• Part 2 to enrol about 490 patients across Australia, New Zealand, and Canada
• Approval granted to also commence trial sites in China, Japan, Singapore, South Korea, Türkiye, and the UK
• Part 1 data to be submitted to the US FDA, aligning public results disclosure
• No newly reported revenue or financial figures in this update

What else do investors need to know?

ProstACT Global is the first Phase 3 trial to test a PSMA-targeted radio antibody drug combined with standard-of-care therapies versus standard-of-care alone for metastatic castration-resistant prostate cancer. The global rollout is accelerating, with applications underway to expand into European sites.

The company highlights potential patient benefits, including different targeting and fewer side effects such as kidney toxicity and dry mouth compared to current radioligand therapies. The clinical trial’s expansion signals Telix’s growing international ambition, including approaching both US and European regulators for further approvals.

What did Telix Pharmaceuticals management say?

Dr. David N. Cade, Group Chief Medical Officer, said:

Dosing the first patient into Part 2 of the randomized treatment expansion of ProstACT Global trial is a significant milestone for Telix’s late-stage prostate cancer therapeutics pipeline. We look forward to presenting the preliminary data from Part 1 of the study to the FDA and EMA in the coming months.

What’s next for Telix Pharmaceuticals?

Telix plans to submit Part 1 data to the FDA to enable US site participation in the clinical trial and expects to share preliminary results publicly in line with its regulatory strategy. In parallel, the company is seeking further expansion into Europe and other international markets.

With global recruitment underway and regulatory milestones ahead, Telix aims to strengthen its late-stage oncology pipeline and broaden its impact for patients with advanced prostate cancer.

Telix Pharmaceuticals share price snapshot

Over the past 12 months, Telix Pharmaceuticals shares have declined 40%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Telix Pharmaceuticals updates investors as first patient is dosed in Phase 3 prostate cancer trial appeared first on The Motley Fool Australia.

More reading

• National Storage REIT agrees to $4bn Brookfield-GIC buyout: What it means for investors
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• 6 ASX shares including Ora Banda and Aussie Broadband ascend into ASX 200
• Guess which ASX mining stock was just promoted to the S&P/ASX 50?

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The next meeting of the US Federal Reserve is on the cards this week, and all eyes are on whether rates will be cut to spur on the US economy.

The research team at Wilsons Advisory say the market is pricing in an 89% chance that US rates will go lower, which has implications for the share markets in the US and in Australia.

As they said in a note to clients this week:

While there are no absolute certainties in central bank crystal ball gazing, it would appear a cut from the Fed is highly likely. Incremental evidence of ongoing labour market softness, a relatively modest inflation uplift from tariffs, alongside some relatively dovish comments from key Fed board members are adding to market confidence that the Fed is set to cut.

Implications for the stock market

So what does this mean for stocks here and in the US?

The Wilsons research team says a further rate cut should be supportive for stock prices both in the US and in Australia.

Looking at the empirical relationship between Fed easing cycles and equity market performance shows the US equity market has had a strong tendency to rise when backed by the supportive combination of Fed easing and an economic soft landing. Indeed, we find no instances (since 1980) of poor US market performance when the Fed is in easing mode, and the US economy achieves a ‘soft landing’. This keeps us constructive on US equities despite full valuations and lingering concerns around the AI capex boom.

And there is also a correlation between Australian equities rising when the Fed is easing and the US economy continuing to grow, Wilsons says.

This appears to hold regardless of whether the RBA is easing in sync with the Fed or not. This is comforting in the face of rising uncertainty as to whether the RBA’s next move in domestic rates in 2026 is actually up rather than down.

Australian sentiment changing

As far as the next moves from the Reserve Bank of Australia on rates, Wilsons says the market is now pricing in a move higher “in the back end of 2026”.

This is in contrast to the market pricing for two cuts in 2026 a little over six weeks ago.

Wilsons said Australia inflation has been a “big surprise” in recent months.

This has caused expectations for the cash rate to move from two cuts in 2026 to the market now pricing for a likely hike. This swing in rate expectations played a part in the recent 7% correction in the Australian equity market however renewed expectations for lower US interest rates have helped the local market edge up from its recent lows.

The post What will a likely US rate cut mean for Australian shares? appeared first on The Motley Fool Australia.

More reading

• Telix Pharmaceuticals updates investors as first patient is dosed in Phase 3 prostate cancer trial
• National Storage REIT agrees to $4bn Brookfield-GIC buyout: What it means for investors
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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 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.

The National Storage REIT (ASX: NSR) share price is in focus after the company announced it has entered into a binding Scheme Implementation Deed with a consortium led by Brookfield and GIC. Under the proposed deal, NSR securityholders will receive a total value of $2.86 cash per security, representing a 26.5% premium to the last undisturbed price. The scheme values NSR’s equity at $4.0 billion and an enterprise value of $6.7 billion.

What did National Storage REIT report?

• Entered a binding scheme with Brookfield and GIC consortium for a total cash consideration of $2.86 per security
• Scheme values equity at approximately $4.0 billion and enterprise value at $6.7 billion
• Total consideration represents 26.5% premium to last undisturbed price as of 25 November 2025
• Scheme consideration is a 10.9% premium to NSR’s net tangible asset (NTA) value of $2.58 per security
• Board unanimously recommends voting in favour, subject to no superior proposal and independent expert support
• Potential permitted distribution of up to 6 cents per security, deducted from the cash offer if paid

What else do investors need to know?

The proposed transaction follows a period of negotiation and confirms earlier speculation that NSR was in acquisition talks. If the permitted distribution is paid for the half-year ending 31 December, the cash component of the scheme price is reduced by 6 cents. The board has also suspended the Dividend Reinvestment Plan (DRP) effective immediately in light of the scheme.

The board’s unanimous recommendation comes with support from an independent expert and is subject to a shareholder vote, court approvals and a range of regulatory clearances including from the Foreign Investment Review Board and New Zealand’s Overseas Investment Office. Subject to conditions, implementation could occur in the second quarter of 2026.

What did National Storage REIT management say?

NSR Managing Director Andrew Catsoulis said:

This proposal is an endorsement of the strong fundamentals and long-term growth strategy of NSR, which has evolved from a single storage centre originally developed at Oxley Queensland in 1995 to Australia and New Zealand’s leading owner and operator of self-storage centres with over 290 centres today providing over 1.6 million square metres of state of the art storage space for its customers. We are confident this position will be further strengthened with the Consortium’s support.

What’s next for National Storage REIT?

Securityholders are not required to take any action at this time. Details of the proposal, including the Scheme Booklet and independent expert’s report, will be provided ahead of a vote anticipated for April 2026. If approved and all conditions are satisfied, the implementation of the scheme is expected in the second quarter of 2026.

The board will pay close attention to regulatory clearances and any competing proposals that may arise, with a ‘superior proposal’ clause providing flexibility. If the transaction proceeds, NSR will be removed from the ASX and its shares delisted.

National Storage REIT share price snapshot

Over the past 12 months, the National Storage REIT shares have climbed 16%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post National Storage REIT agrees to $4bn Brookfield-GIC buyout: What it means for investors appeared first on The Motley Fool Australia.

More reading

• Telix Pharmaceuticals updates investors as first patient is dosed in Phase 3 prostate cancer trial
• Corporate Travel Management and Boss Energy shares dumped from ASX 200
• 5 things to watch on the ASX 200 on Monday
• 6 ASX shares including Ora Banda and Aussie Broadband ascend into ASX 200
• Guess which ASX mining stock was just promoted to the S&P/ASX 50?

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Santos Ltd (ASX: STO) shares have become one of the most watched names in the Australian energy sector – and not for all the right reasons.

It’s understandable that the gas producer’s stock has mostly declined this year. On Friday, Santos shares ended at $6.52, down 19% from their peak mid-August.  

Some experts suggest the ASX energy stock is now a strong option, given its improved stability. Let’s take a closer look.  

Takeover drama and heated debate

This year has seen plenty of takeover drama and heated debate about Santos’ environmental record.

The gas producer is currently at a pivotal point in its operations. Santos is generating strong cash flow and is driving future growth by expanding LNG facilities and advancing carbon-management initiatives.

Santos benefits from growing supply and solid contracts, with projects like Barossa expected to increase LNG volumes for Asian markets seeking reliable, high-calorific gas.

The $21 billion business also signed mid-term LNG supply agreements this year, highlighting firm demand for its output. Those operational gains, if sustained, should translate into stronger cash flow and greater optionality for returns to shareholders.

Projects in PNG and Alaska

Santos’ strengths include scale and a strong project pipeline. Barossa and international projects in PNG and Alaska diversify revenues and reduce dependence on single assets.

Santos has also been positioning itself on low-emission technologies which it argues will help smooth the company’s path through an energy transition.

Regulatory issues and operational hiccups

The optimistic outlook is tempered by significant risks. Santos faced a failed takeover attempt by an ADNOC-led group, revealing governance and regulatory issues that can swiftly lower its share price when deals collapse.

Operational hiccups such as outages and weather disruption at offshore assets, commodity price volatility, and persistent criticism over the effectiveness and optics of emission programs leave the company exposed to both market and reputational risk.

Outlook and what analysts say

It’s clear that Santos shares are not without risk. However, they do offer investors exposure to a major, cash-generating gas company with upcoming production growth and plans for lower-carbon operations.

Analysts remain cautiously constructive, reflecting a mix of buy and hold calls. The average 12-month analyst price target sits around $7.40, a 14% upside from the current share price.   

Looking to 2026, analysts at Macquarie expect that Santos shares will face headwinds from falling natural gas prices. Macquarie has an outperform recommendation and an $8 price target on Santos shares. That represents a potential upside of 23% from Friday’s closing price.

In a recent note, the broker highlights:

We believe an underweight position in Oil & Gas is warranted, given our still bearish oil and LNG outlooks. Within this, Santos remains our top pick, where we see value appeal on an absolute and relative basis (and clear catalysts to re-rate). We see significant value in STO following the deal break with XRG/ Carlyle and expect this to be better recognised once customer deliveries commence from Barossa gas project via Darwin LNG (within weeks) and Pikka oil in Alaska (1Q-2026).

The post Why Santos shares are a key energy stock to watch appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Should you buy Santos, Beach Energy or Woodside shares? Here’s Macquarie’s top pick
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.