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Investing.com - Benchmark has reiterated its Buy rating and $33.00 price target on APA Corp. (NASDAQ:APA), maintaining its positive outlook on the oil and gas producer. According to InvestingPro analysis, APA appears undervalued at current levels, with the stock showing strong returns over both three-month and five-year periods.
The research firm adjusted its third-quarter earnings per share estimate to $0.88 from $0.94, and reduced its EBITDA forecast to $1.22 billion from $1.281 billion due to mark-to-market commodity prices. These estimates remain above the consensus EPS projection of $0.76, while aligning closely with the consensus EBITDA estimate of $1.21 billion.
Benchmark analysts met with APA CEO John Christmann and CFO Ben Rodgers on September 12, which reinforced their confidence in the company’s continued outperformance. The firm cited operational expense efficiencies, Egyptian gas production growth, and exploration activities as key drivers.
The research note also highlighted APA’s "relatively cheap valuation" as a factor supporting the maintained Buy rating and price target.
Benchmark estimates APA will generate $248 million in free cash flow after dividends in the current quarter, representing a 1.8% free cash flow yield.
In other recent news, APA Corporation announced a regular cash dividend of 25 cents per share, payable on November 21, 2025, to shareholders of record as of October 22, 2025. This financial move follows a series of positive developments for the company. UBS raised its price target for APA to $21, citing strong second-quarter results characterized by cash flow per share improvements due to cost savings and efficiency gains. Meanwhile, CFRA increased its price target to $22, acknowledging APA’s significant debt reduction, with net debt decreasing by $1.4 billion to $4.4 billion over three months. Raymond James also raised its price target for APA to $28, highlighting the company’s successful turnaround in the second quarter, marked by better-than-expected production and cash flow metrics, alongside reduced capital expenditure guidance for 2025. Benchmark maintained a $33 price target, noting the stabilization and reversal of issues that previously impacted APA’s performance. These recent developments reflect APA’s ongoing efforts to improve its financial standing and operational efficiency.
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