A Look at Santos (ASX:STO) Valuation Following Sudden CFO Resignation and Leadership Changes

Santos (ASX:STO) is navigating a significant leadership change after Chief Financial Officer Sherry Duhe abruptly resigned. She cited differences with CEO Kevin Gallagher and an untenable leadership environment within the company.

See our latest analysis for Santos.

Santos has seen its share price bounce modestly in recent days, ticking up 2.22% in the last session after dropping 17.1% over the past three months. While this year has featured high-profile executive changes, the company’s one-year total shareholder return of -2.5% suggests momentum is still searching for its footing amid market uncertainty.

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With shares still trading below analyst price targets and investor sentiment being tested by leadership changes, the key question for investors is whether Santos is currently undervalued or if the market is already factoring in its future growth prospects.

Most Popular Narrative: 18.1% Undervalued

With Santos shares trading at A$6.45, widely followed analysts believe the company could command significantly higher value, hinting at overlooked drivers. Investors could be missing crucial long-term potential embedded in the current price.

Strong momentum in securing long-term, oil-linked LNG contracts: 92% of the portfolio is contracted and 80% is oil-linked through 2029. This enhances revenue visibility and pricing power amid ongoing geopolitical-driven energy security concerns, supporting stable and growing earnings.

Read the complete narrative.

Want to see what’s behind these bullish forecasts? The full narrative reveals a striking mix of ambitious revenue growth, rising profit margins, and carefully calibrated future multiples. Curious how these bold targets power the analysts’ valuation? Click through to uncover the key numbers that could drive Santos’s next big move.

Result: Fair Value of $7.88 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, costly setbacks from major projects or stricter decarbonization policies could quickly undermine these upbeat forecasts and challenge Santos’s future growth potential.

Find out about the key risks to this Santos narrative.

Build Your Own Santos Narrative

If you want to challenge these views or prefer drawing your own insights from the numbers, crafting a personalised narrative takes just a few minutes. Do it your way

A great starting point for your Santos research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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