Gold bars to be exempt from tariffs, White House clarifies
Investing.com - CFRA has raised its price target on APA Corp. (NASDAQ:APA) to $22.00 from $19.00 while maintaining a Hold rating on the stock. According to InvestingPro data, APA currently trades at an attractive P/E ratio of 6.14 and appears undervalued based on comprehensive Fair Value analysis.
The research firm cited APA’s progress in reducing debt levels, noting that the company has decreased its net debt by $1.4 billion to $4.4 billion in just three months. InvestingPro analysis shows the company maintains a "GOOD" overall Financial Health score, though its current ratio of 0.89 indicates short-term obligations exceed liquid assets.
CFRA also highlighted APA’s cost-cutting efforts, which appear to be yielding positive results, leading the firm to increase its 2025 earnings per share estimate by $0.25 to $3.29 and its 2026 estimate by $0.42 to $3.31.
The new $22 price target reflects a 2.8x multiple of enterprise value to projected 2026 EBITDA, which remains below APA’s historical forward average, as CFRA believes a discount is reasonable given the company’s challenges of high debt levels and low reserve life.
CFRA noted that APA has growth potential in the Permian Basin in the short term and in Suriname for the long term, while the company is prudently reducing Permian capital spending and shifting production somewhat toward natural gas.
In other recent news, APA Corporation reported impressive financial results for the second quarter of 2025, significantly exceeding analysts’ expectations. The company achieved an adjusted net income of $313 million, or $0.87 per share, which was notably higher than the anticipated $0.52 per share. Revenue also surpassed forecasts, coming in at $2.18 billion compared to the expected $1.98 billion. These figures highlight a substantial earnings surprise of 67.31%. Additionally, APA Corporation’s performance led to a positive reaction in the market. The company’s strong financial results reflect its operational effectiveness during this period. Investors and analysts closely monitor such developments for insights into the company’s financial health. These recent developments underscore APA Corporation’s ability to outperform market expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.