APA Corp. downgraded to Neutral from Buy at Citi

Citi downgraded APA Corp. (APA) to Neutral from Buy with a price target of $37, down from $52. The analyst says initial aspirations for 10% exit rate oil growth were revised down and the timing of Suriname first oil disappointed. Along with higher capex, Citi’s cash flow forecast for fiscal 2024 has moderated. While APA’s exploration could still provide a catalyst, there is less growth going forward, the analyst tells investors in a research note. The firm now finds APAs valuation less compelling than Ovintiv’s (OVV) under similar commodity price forecasts.