Analyst Subash Chandra from Benchmark Co. maintained a Buy rating on APA (APA – Research Report) and keeping the price target at $33.00.
Subash Chandra has given his Buy rating due to a combination of factors that indicate a positive outlook for APA’s financial performance. The company reported adjusted EBITDA that exceeded both consensus and Benchmark’s expectations, primarily due to effective management of capital expenditures and costs. Additionally, APA has reduced its annual capital expenditure guidance by $150 million, thanks to efficiencies in drilling operations, without negatively impacting oil production.
Another reason for the Buy rating is APA’s strategic focus on Egypt’s natural gas market, where the company benefits from favorable and increasing gas prices. Furthermore, APA has made significant progress in reducing its receivables to their best level since 2022. The company’s efforts in debt reduction and asset sales, particularly the $608 million sale of northern Del assets, are also contributing to a more robust financial position. Overall, these strategic moves are expected to enhance APA’s market perception and financial stability.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $24.00 price target.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of APA in relation to earlier this year.