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Investing.com - UBS raised its price target on APA Corp. (NASDAQ:APA) to $25.00 from $23.00 on Wednesday, while maintaining a Neutral rating on the oil and gas producer’s stock. According to InvestingPro data, APA currently trades at an attractive P/E ratio of 7.94, with analysis suggesting the stock is undervalued relative to its Fair Value.
The firm cited APA’s progress on cost reduction and balance sheet improvement programs that were announced earlier this year, noting these initiatives are now positively impacting the company’s financial results. The company maintains a solid financial health score of "Good" on InvestingPro, with revenue growth of nearly 12% over the last twelve months.
UBS expects APA’s third-quarter cash flow per share to come in at the higher end of recent estimates, with the company likely to highlight continued positive momentum across its Permian Basin and Egypt assets during its upcoming earnings report.
The investment bank also anticipates APA will provide preliminary guidance on its 2026 outlook when it reports third-quarter results for 2025.
Despite these positive developments, UBS maintained its Neutral stance, noting that APA’s recent stock performance—outpacing peers by more than 20% over the past three months—already reflects these improvements, while the company remains vulnerable to potential oil price declines due to significant abandonment and retirement obligations.
In other recent news, APA Corporation reported a net gain of $177 million from oil and gas transactions in the third quarter of 2025. The company disclosed average realized prices in the U.S. of $66.00 per barrel for oil, $20.00 per barrel for natural gas liquids, and $0.70 per thousand cubic feet for natural gas, with international prices being slightly higher. Benchmark has reiterated its Buy rating and $33.00 price target on APA, citing significant improvements in the company’s business operations. The firm adjusted its third-quarter earnings per share estimate to $0.88, which remains above the consensus projection of $0.76. RBC Capital maintained its Sector Perform rating and $24.00 price target on APA, highlighting the company’s progress in cost reduction initiatives. These developments reflect APA’s ongoing efforts to improve its financial performance and operational efficiency.
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