The Analyst Verdict: APA In The Eyes Of 11 Experts

Throughout the last three months, 11 analysts have evaluated APA APA, offering a diverse set of opinions from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $25.55, a high estimate of $45.00, and a low estimate of $14.00. Observing a downward trend, the current average is 13.8% lower than the prior average price target of $29.64.

Interpreting Analyst Ratings: A Closer Look

A comprehensive examination of how financial experts perceive APA is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Scott Gruber |Citigroup |Lowers |Neutral | $15.00|$20.00 | |Paul Cheng |Scotiabank |Lowers |Sector Perform | $14.00|$26.00 | |Scott Hanold |RBC Capital |Lowers |Sector Perform | $24.00|$27.00 | |Roger Read |Wells Fargo |Lowers |Equal-Weight | $23.00|$25.00 | |Betty Jiang |Barclays |Lowers |Equal-Weight | $25.00|$27.00 | |Scott Gruber |Citigroup |Lowers |Neutral | $20.00|$24.00 | |Arun Jayaram |JP Morgan |Lowers |Neutral | $20.00|$23.00 | |John Freeman |Raymond James |Lowers |Outperform | $32.00|$45.00 | |Biju Perincheril |Susquehanna |Lowers |Positive | $31.00|$33.00 | |John Freeman |Raymond James |Raises |Strong Buy | $45.00|$44.00 | |Scott Hanold |RBC Capital |Maintains |Sector Perform | $32.00|$32.00 |

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to APA. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of APA compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of APA's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on APA analyst ratings.

Discovering APA: A Closer Look

APA Corp is an independent exploration and production company. It develops, and produces crude oil, natural gas, and natural gas liquids. The Company's business has oil and gas operations in three geographic areas: the United States (U.S.), Egypt, and offshore the U.K. in the North Sea (North Sea). APA also has active development, exploration, and appraisal operations ongoing in Suriname, as well as exploration interests in Uruguay, Alaska, and other international locations.

APA: Delving into Financials

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: APA displayed positive results in 3M. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 25.15%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Net Margin: APA's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 13.05%, the company may face hurdles in effective cost management.

Return on Equity (ROE): APA's ROE stands out, surpassing industry averages. With an impressive ROE of 6.81%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.83%, the company showcases effective utilization of assets.

Debt Management: APA's debt-to-equity ratio stands notably higher than the industry average, reaching 1.17. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.