Santos Ltd (ASX: STO) shares are trending higher in Wednesday morning trade.

At the time of writing, the shares are up around 2% and are changing hands at a six-year high of $8.54 each.

The latest increase means the oil and gas company’s shares have increased around 39% for the year-to-date, and they’re also up 12% compared to this time last year.

What is driving the shares higher this year?

The ASX energy shares shot higher in 2026 off the back of ongoing conflict between the US and Iran. Volatility in the region has fuelled significant concerns about tighter global oil supply and rising prices.

The shares spiked in February and March, around the time news first broke that conflict had escalated between the two nations. The shares continued climbing in value as the war heated up.

Santos shares cooled in June off the back of news that the two nations could soon reach a peace agreement, but strikes have resumed in the region this week, reigniting inflation fears and pushing the energy company’s shares to a fresh high.

The shares have also been supported by the company’s strong half-year FY26 results announcement, which it posted last month.

Santos 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.

The business could continue strengthening this year

It looks like the oil and gas business is well placed to keep increasing its production in the coming reporting periods, which could help boost its earnings even further.

Just this week, Santos announced that it has agreed to spend around US$189 million ($262 million) to buy another 3.3% of the Papua LNG project from TotalEnergies SE (NYSE: TTE).

The deal is still subject to regulatory approvals and a final investment decision. This is currently targeted for the fourth quarter of 2026.

If it goes ahead, Santos expects its share of LNG production from Papua LNG to rise by around 19% to about 1.2 million tonnes per year.

So, what do brokers tip for Santos shares next?

It looks like the experts are bullish about the outlook for Santos shares over the next 12 months.

Market Index data shows that all brokers have a strong buy rating on the stock. But after the latest rally, the $8.57 average target price now implies around a 0.5% upside, at the time of writing.

Sentiment is also very positive on TradingView. Out of 15 analysts, 13 have a buy/strong buy rating on Santos shares. Meanwhile, one analyst rates it a hold, and one rates the energy share a sell. 

The average $8.75 target price implies a potential 2% upside ahead, at the time of writing. But some expect the shares to jump around 24% to $10.60 within the next 12 months.

Citi reaffirmed its buy rating on the ASX 200 energy share following its half-year update. The broker also raised its target price to $9, which is a little above the average.

Elsewhere, Morgans has a hold rating on Santos shares. The broker noted that the results beat estimates, but that it is impossible to quantify the risks posed by the Federal Government’s gas reservation policy ahead of its release. 

The post Here’s what brokers tip for Santos shares over the next 12 months appeared first on The Motley Fool Australia.

More reading

• Is the Santos share price still good value after rising 37% in 2026?
• 5 things to watch on the ASX 200 on Wednesday
• Santos shares on watch after major Papua LNG deal
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday

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.

The All Ordinaries Index (ASX: XAO) is up a slender 0.6% in 2026, with no thanks to these two beaten down ASX All Ords healthcare shares.

The struggling companies in question are commercial-stage medical device company Saluda Medical Inc (ASX: SLD) and health imaging company Pro Medicus Ltd (ASX: PME).

In morning trade on Wednesday, Pro Medicus shares are changing hands for $168.79 apiece. That’s down 0.5% today, and it sees the Pro Medicus share price down 24.2% since 2 January.

Saluda Medical, which listed on the ASX on 5 December, has had an even tougher year of it.

At time of writing, Saluda Medical shares are trading for 41 cents each. That’s flat for the day, but it still sees this ASX All Ords healthcare down a painful 71.7% year to date.

Looking ahead, however, Medallion Financial Group’s Stuart Bromley believes both ASX All Ords healthcare shares are well-placed to rebound in the months ahead courtesy of The Bull).

Here’s why.

ASX All Ords healthcare share increasing revenue

Turning to Saluda Medical first, Bromley said, “Saluda makes the Evoke spinal cord stimulator, which automatically adjusts pain therapy in real time.”

And he was impressed with Saluda’s FY 2026 results.

Bromley noted:

Results in full year 2026 were strong, in our view.

Revenue of $US90.2 million was up 28 per cent on the prior corresponding period and ahead of upgraded guidance. US patient implants increased by 50 per cent in the fourth quarter of 2026.

Summarising his buy recommendation on the ASX healthcare stock, he concluded:

With its newly approved CAP24 surgical paddle lead expanding the addressable US market by about 30 per cent, we believe SLD presents as an attractive buying opportunity for investors comfortable with potential share price volatility and risk.

Which brings us to…

Pro Medicus shares trading at ‘attractive’ levels

Bromley also had a bullish take on Pro Medicus shares.

“Pro Medicus is a global leader in medical imaging software, with its Visage platform increasingly adopted by major US hospital networks,” he said.

Summarising his buy recommendation on the ASX All Ords healthcare share, Bromley concluded:

Revenue of $261.7 million in full year 2026 rose 22.9 per cent on the prior corresponding period. Underlying net profit after tax of $144.7 million was up 24.1 per cent. Revenue and underlying net profit exceeded expectations, while the underlying earnings before interest and tax margin reached an exceptional 74.9 per cent.

It signed 10 new contacts worth $407 million in full year 2026. It renewed six contracts on five-year terms to the value of $141 million. Recent share price weakness provides an attractive entry point into a high-quality growth business.

The post Expert names 2 beaten-down ASX All Ords healthcare shares to buy today appeared first on The Motley Fool Australia.

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• Down 43%! 4 reasons to buy the BIG dip in Pro Medicus shares today
• Experts name 3 top ASX shares to buy this week

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 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.

Macquarie is now predicting the Reserve Bank of Australia (RBA) board will hike interest rates at its meeting later this month, saying that stubbornly high inflation is likely to force its hand.

Data will force the Reserve Bank to act

In a research note released this week, Macquarie noted that trimmed mean inflation had spent 17 of the last 20 quarters above the RBA’s target band for inflation of 2%-3%.

Macquarie said the RBA had “run a monetary experiment” over the past couple of years, “hiking less than other central banks during 2022 and 2023 in an attempt to hold onto part of the fall in unemployment that occurred during COVID”.

They went on to say:

In the first half of 2025, it looked like the experiment had worked, with underlying inflation returning to the middle of the target band, allowing the RBA to claim victory by easing policy by 75 basis points. However, over the second half of 2025 both growth and inflation rebounded, forcing a reversal of the earlier cuts as the RBA acted to slow growth. The 75 basis points of tightening earlier this year is working, with growth in recent quarters below trend. However, with unemployment still around three quarters of a percentage point below the pre-COVID level, the RBA now seems to feel that output remains above the economy’s potential, suggesting that more needs to be done to bring inflation back to target.

Macquarie said wages growth in the second quarter was slightly below RBA expectations while July inflation was strong, however volatility in these numbers made it difficult to “discern signal from noise”.

RBA sending a clear message

But the broker said the RBA appeared to be sending clear signals about a rise in interest rates.

As they wrote:

Commentary … from RBA Assistant Governor Hunter has provided a clear steer on which side of the fence RBA staff have landed. Hunter highlighted concerns about oil prices and strength in the July CPI. While acknowledging the volatility in the monthly CPI series, she indicated RBA staff see enough signal in the data of stronger than expected inflation (pointing to strength in domestic factors such as market services and new dwelling price inflation).  

Macquarie said the conclusion they drew from this was that a 25 basis point increase later this month was now the most likely outcome.

The cash rate was last increased, by 25 basis points, on May 6, following identical increases in February and March.

The official cash rate now sits at 4.35%.

The post Macquarie makes a big call on a September interest rate hike appeared first on The Motley Fool Australia.

More reading

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• 2 ASX shares with dividend yields above 8%
• 5 things to watch on the ASX 200 on Wednesday
• Could this exciting growth stock be set to triple? Morgans thinks it can
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Macquarie Group. The Motley Fool Australia 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.