Goldman refreshes its gold stocks outlook for 2025
Investing.com - Raymond James has raised its price target on APA Corp. (NASDAQ:APA) to $28.00 from $26.00 while maintaining an Outperform rating on the stock. According to InvestingPro data, 13 analysts have recently revised their earnings expectations upward, while the stock currently trades at an attractive P/E ratio of 7.5x.
The firm cited APA’s continued turnaround in the second quarter, with the company beating slightly on production and cash flow metrics, while reducing its 2025 capital expenditure guidance.
Raymond James noted that APA has increased its fiscal year 2025 realized savings estimate to $200 million, up from $130 million previously, and raised its year-end 2025 run-rate savings to $300 million from $225 million.
The company was awarded 2 million acres of additional leasehold in Egypt, increasing its position by approximately 35%, according to the research note.
Raymond James highlighted that APA has a 2026 free cash flow to enterprise value yield of approximately 14% compared to a peer group average of about 10%, and trades at roughly 3 times enterprise value to EBITDA for fiscal year 2026 versus peers at about 4 times.
In other recent news, APA Corporation reported impressive financial results for the second quarter of 2025, with earnings significantly surpassing analyst expectations. The company achieved an adjusted net income of $313 million, or $0.87 per share, well above the forecast of $0.52 per share. Additionally, revenue reached $2.18 billion, exceeding the anticipated $1.98 billion. These strong results prompted UBS to raise its price target for APA to $21, citing the company’s early cost savings and efficiency gains. Similarly, CFRA increased its price target to $22, highlighting APA’s progress in reducing its net debt by $1.4 billion to $4.4 billion within three months. In another development, APA Corporation declared a regular cash dividend of 25 cents per share, payable on November 21, 2025, to stockholders of record as of October 22, 2025. These recent developments reflect APA’s ongoing efforts to strengthen its financial position and deliver value to shareholders.
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