Santos downgraded to Market Perform from Outperform at Bernstein

Bernstein downgraded Santos to Market Perform from Outperform with a A$7.70 price target. While the firm still likes the company’s long term fundamentals, it says a downturn in liquified natural gas prices, a range-bound oil price, and low near term free cash flow yields are unlikely to attract new investors. After several years of tight gas supply, the LNG market should revert from being net short to net long in the near-term with 175MTPA of new capacity reaching the market over 2025-2027, the analyst tells investors in a research note.