The Santos Ltd (ASX: STO) share price has surged 28% year to date, but could it climb higher?
Santos shares are currently trading at $8.10, a 1.12% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.07% at the time of writing.
Let's take a look at the outlook for Santos.
Could the Santos share price go higher?
The Santos share price is climbing today despite sliding oil prices. At the time of writing, the Brent crude oil price has slipped 2.22% to US$100.50 a barrel, according to Bloomberg. Meanwhile, the WTI crude oil price has dropped 2.37% to US$95.93 a barrel.
Woodside Petroleum Limited (ASX: WPL) shares are also 1.23% in the red at the time of writing.
However, according to Tribeca Investment Partners, Santos is "undervalued".
In fact, Tribeca sees the company as the number one oil company on the ASX. In an interview with Livewire, Tribeca's lead portfolio manager Jun Bei Liu said Santos is a company that is very attractive in the energy sector:
We think the business has been significantly undervalued given how much the oil price has gone up.
And also because of what it's doing in that whole decarbonization space, that is incredibly valuable. So that's our number one pick for the oil space.
Morgans recently named Santos as a share to add with a $9 price target. The broker expressed positivity on the company's diversified earnings base and the resilience of the company's growth profile.
Share price snapshot
Santos shares have gained 14% in the past 12 months, while they have climbed almost 6.5% in the past month.
In contrast, S&P/ASX 200 Index (ASX: XJO) has returned around 7% in the past 52 weeks.
In the last week, Santos shares are 2.3% higher.
Santos has a market capitalisation of about $27.3 billion based on the current share price.
