The Santos (ASX: STO) share price has had a brilliant start to the year, but could it still be a buying opportunity?
Santos shares have gained 25.52% since the start of 2022 and are currently trading at $7.93, a 0.38% gain on Friday's close.
Let's take a look at how experts rate the Santos share price.
Image source: Getty Images
Could the Santos share price still gain more?
Analysts at Morgan Stanley have retained their overweight rating on the share with a $10.40 price target. That's 31% more than the current share price. Following the release of Santos's climate report on Wednesday, Morgan Stanley highlighted the company's carbon credit plans could help it create new revenue streams.
Meanwhile, Wavestone Capital principal and portfolio manager Raaz Bhuyan marked Santos as a company with a management team that stands out, in a Livewire episode of Buy Hold Sell. Bhuyan noted Santos is trying to bring down its carbon footprint while growing production. He added:
We've owned Santos and Kevin Gallagher who's the CEO – and has been the CEO since 2016 – has done an exceptional job. He obviously bought Oil Search right before the oil price took off. He's got a diversified business. He's done an exceptional job with the way he's taking the business forward.
Perpetual portfolio manager James Rutledge agrees. He said Gallagher has done a great job taking out costs in the business since 2016. He also added the following assessment:
He has 'high-graded' the portfolio through the acquisition of the Oil Search assets. He needs to divest some assets and improve the free cash flow over the medium term, but we will back him to do it.
Santos share price snapshot
The Santos share price has climbed 11.24% in the past 12 months while it has gained 1% in a month.
In comparison, S&P/ASX 200 Index (ASX: XJO) has returned 10% in the past year.
In the last week, Santos shares have slid marginally — down by 0.25%.
Santos has a market capitalisation of about $26.8 billion based on the current share price.
