APA Analyst Trims Price Target By 6% Given The Strip's Pullback

Raymond James analyst John Freeman reiterated a Strong Buy rating on the shares of APA Corp APA and lowered the price target to $70 from $75.
The move comes after the company provided Q3 supplemental information.
The analyst said at first glance, 3Q production screened mixed, with U.S. outperformance offset by lackluster international output.
However, contrary to Q2, the analyst said he has no reason to believe Egyptian volumes will land outside APA's original Q3 range, a silver lining given the huge 2H22 ramp.
The analyst has modeled Q3 FY22 production of ~378 MBoe/d, considering both U.S. outperformance and the North Sea's roughly 8 MBoe/d miss.
He lowered the price target, given the strip's pullback. With operational issues no longer handicapping Egypt, APA's in a position for a breakout in 2023, the analyst noted.
Price Action: APA shares are trading higher by 3.18% at $40.40 on the last check Wednesday.
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