the most current ratings, page-119

RBS Australia 19/02/2010 1 Buy $17.00 26.2%

Full year earnings were lower than the broker had forecast thanks to higher tariff and corporate costs and so it lowers its estimates slightly.

The changes don't impact on its price target and with LNG the main story for the company there was nothing in the result to cause the broker to move form its Buy rating.



Deutsche Bank 19/02/2010 1 Buy $18.50 37.3%

The Santos result came in as expected, but it's all academic while the attention is focussed on the make-or-break Gladstone LNG project. The broker points out Santos has declared it does not need third party agreements to go ahead with the first train, but the broker believes another third party agreement is needed before the stock can re-rate.

The broker is confident, suggesting Santos is currently well undervalued while awaiting the next milestone. Buy retained. Valuation has been affected by rolling along the forward curve. Target falls from $20.00 to $18.50.