Scotiabank Raises APA Price Target to $22, Keeps 'Sector Perform' Rating.

Scotiabank raised APA's price target from $14 to $22, a 57.14% increase, maintaining its "Sector Perform" rating. This reflects a more optimistic outlook on APA's future stock performance. Investors should consider the revised target as part of their assessment of APA's potential trajectory. The average one-year price target is $22.80, implying an 11.21% upside from the current price.

Scotiabank has significantly increased its price target for APA Corp (APA, Financial) from $14 to $22, representing a 57.14% increase [1]. This adjustment comes while maintaining the firm's "Sector Perform" rating, indicating a more optimistic outlook on the company's future stock performance. The analyst responsible for this update, Paul Cheng, highlighted that the revised target reflects Scotiabank's recognition of APA's potential market resilience and value growth.

The average one-year price target for APA, as forecasted by 26 analysts, is $22.80, with a high estimate of $35.00 and a low estimate of $16.00 [1]. This average target implies an upside of 11.21% from the current price of $20.50. The consensus recommendation from 29 brokerage firms is a "Hold" status, indicating a neutral stance on the stock [1].

GuruFocus estimates that the GF Value for APA Corp in one year is $24.81, suggesting an upside of 21.02% from the current price of $20.50 [1]. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at, calculated based on historical multiples, past business growth, and future performance estimates.

APA Corp reported strong first-quarter results, with net income of $347 million or $0.96 per diluted share and adjusted net income of $385 million or $1.06 per share [3]. The company also achieved significant cost savings of $800,000 per well in the Permian, and gas production in Egypt exceeded guidance due to outperformance from recent development programs [3]. However, the company is facing upward pressure on certain operating costs in the Permian, and achieving meaningful long-term cost reductions is proving challenging due to inflationary pressures [3].

Investors should consider the revised price target as part of their assessment of APA's potential trajectory, especially given the unchanged "Sector Perform" rating. This development could play a significant role in influencing investment decisions regarding APA.

References:
[1] https://www.gurufocus.com/news/2972466/scotiabank-raises-apa-price-target-to-22-maintains-sector-perform-rating-apa-stock-news
[2] https://www.investing.com/news/analyst-ratings/waters-stock-price-target-raised-to-465-from-450-at-scotiabank-93CH-4132200
[3] https://www.gurufocus.com/news/2972166/apa-corp-apa-price-target-raised-to-22-by-scotiabank--apa-stock-news
[4] https://seekingalpha.com/news/4466493-apa-trimmed-q2-natural-gas-ngl-production-due-to-weak-prices