Update shared on27 Aug 2025
Fair value Increased 3.01%Analysts have revised Santos’ price target upward to A$8.58, primarily reflecting concerns over risks to the XRG acquisition proposal, which has prompted a more cautious outlook.
Analyst Commentary
- Concern over potential risks to XRG's acquisition proposal completing, leading to a more cautious outlook and lower price target.
What's in the News
- Santos announced an ordinary fully paid dividend of USD 0.1340 per security for the six months ended June 30, 2025.
- XRG P.J.S.C, Abu Dhabi Developmental Holding Company PJSC, and The Carlyle Group proposed to acquire Santos for AUD 28.8 billion (AUD 8.89 per share) via a scheme of arrangement; the Board intends to unanimously recommend the deal, subject to a binding SIA and independent expert approval.
- The consortium has entered into an exclusivity deed, with six weeks of exclusive due diligence access, and the transaction is subject to regulatory approvals in Australia, Papua New Guinea, and the United States.
Valuation Changes
Summary of Valuation Changes for Santos
- The Consensus Analyst Price Target has risen slightly from A$8.33 to A$8.58.
- The Future P/E for Santos has significantly risen from 13.78x to 20.83x.
- The Consensus Revenue Growth forecasts for Santos has significantly risen from 7.4% per annum to 10.3% per annum.
Disclaimer
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