Do Wall Street Analysts Like APA Corporation Stock?
With a market cap of around $6 billion, APA Corporation (APA) is a leading independent energy company, with a global footprint spanning the United States, Egypt, the North Sea, and South America. APA also holds significant exploration assets offshore Suriname and interests in Uruguay and other international locations, along with a minority stake in Permian-focused Altus Midstream Company.
Shares of the Houston, Texas-based company have significantly underperformed the broader market over the past 52 weeks. APA stock has decreased 43.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 12.3%. Moreover, shares of APA are down 28.7% on a YTD basis, lagging behind SPX's 3.3% decline.
Looking closer, the oil and natural gas producer has also lagged behind the Energy Select Sector SPDR Fund's (XLE) 11.4% drop over the past 52 weeks.
Despite beating revenue expectations with $2.5 billion in Q4 2024 on Feb. 26, APA shares dipped 7.2% due to a significant adjusted earnings miss, reporting $0.79 per share. Net income dropped to $354 million, as oil prices fell to $72.42 per barrel, despite a slight rise in natural gas liquids prices. Additionally, mixed investor sentiment and uncertainty around capital spending plans and exploration risks, particularly in Alaska and Suriname, likely weighed on the stock.
For the fiscal year ending in December 2025, analysts expect APA's adjusted EPS to dip 22.6% year-over-year to $2.92. The company's earnings surprise history is mixed. It beat the consensus estimates in one of the last four quarters while missing on three other occasions.
Among the 25 analysts covering the stock, the consensus rating is a “Hold.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” 15 “Hold,” one “Moderate Sell,” and three “Strong Sells.”
This configuration is less bullish than three months ago, with seven “Strong Buy“ ratings on the stock.
On Apr. 17, Citi analyst Scott Gruber cut APA's price target to $15 and maintained a “Neutral“ rating. Citi projects Q1 CFPS at $2.76, slightly below consensus, and expects focus on 2025 plans, cost reduction progress, and potentially an update on Alaska exploration.
As of writing, APA is trading below the mean price target of $22.44. The Street-high price target of $36 implies a potential upside of 118.7%.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.