Kalei Akamine, an analyst from Bank of America Securities, maintained the Sell rating on APA (APA – Research Report). The associated price target remains the same with $26.00.
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Kalei Akamine has given his Sell rating due to a combination of factors impacting APA’s performance and outlook. The company’s 2025 oil production guidance fell short of expectations, with a notable discrepancy of 10 mbd compared to consensus estimates. This shortfall was observed both in the US and Egypt, leading to a weaker production outlook for the upcoming year.
Additionally, while APA’s cost-cutting initiatives aim to save $350 million annually by the end of 2027, the details remain limited, and the impact on overall valuation is uncertain. Despite some positive aspects, such as higher-than-expected free cash flow and active share repurchase strategies, the overall mixed results and operational challenges have contributed to the underperform rating. The exploration efforts in Alaska and ongoing developments in Egypt offer some potential benefits, but the general outlook remains negative.
APA’s price has also changed moderately for the past six months – from $28.980 to $22.010, which is a -24.05% drop .