Skip to Content
scroll

Santos Ltd (STO) $7.02

STO has traded sideways for over 3 ½ years, begging the question of why 2024/5 will be any different. The company’s result disappointed last month, seeing the stock quickly retreat towards $7, although the whole sector struggled. After failing to agree on a merger deal with WDS earlier this year, the $22.8bn oil and gas company has garnered some further takeover speculation, with Saudi Arabia and the UAE touted as potential suitors. We cannot rule out the possibility of a foreign takeover of the Adelaide-based producer 7-months after the mooted $80 billion merger with WDS, but it’s not reason alone to buy the stock. STO is not new to the takeover arena, with Brookfield also having made an unsuccessful $14.4 billion approach for the company back in 2018.

  • The ASX energy stocks have significantly underperformed their overseas peers, raising the prospect of stock or cash/stock bids.
chart
image description
Santos Ltd (STO) v Exxon Mobil (XOM)
  • We still have no catalysts to buy STO, and a test of $6 cannot be ruled out.
STO
MM is neutral at best towards STO
Add To Hit List
chart
image description
Santos Ltd (STO)
image description

Relevant suggested news and content from the site

Back to top