UBS raises APA stock price target to $21 on strong Q2 results

Published 11/08/2025, 15:30
UBS raises APA stock price target to $21 on strong Q2 results

Investing.com - UBS raised its price target on APA Corp. (NASDAQ:APA) to $21.00 from $19.00 on Monday, while maintaining a Neutral rating on the stock. According to InvestingPro data, APA appears undervalued based on its Fair Value analysis, with three analysts recently revising their earnings estimates upward.

The price target increase follows APA’s strong second-quarter 2025 results, which showed a cash flow per share beat driven by early cost savings and efficiency gains. The company maintains healthy profitability metrics, with a P/E ratio of 6.76x and an impressive EV/EBITDA of 2.15x.

UBS noted that these improvements enabled APA to lower its Permian maintenance capital program to six rigs while improving breakevens across its acreage.

In Egypt, UBS highlighted that cost savings, increased gas production, and improved gas realizations should drive further free cash flow growth into next year for the company.

Despite these positive developments, UBS maintained its Neutral stance, describing APA as a "show me" story that requires continued execution before it can achieve a re-rating back toward its peer group.

In other recent news, APA Corporation reported strong financial results for the second quarter of 2025, exceeding earnings expectations. The company achieved an adjusted net income of $313 million, or $0.87 per share, which was significantly higher than the projected $0.52 per share. Revenue also surpassed forecasts, reaching $2.18 billion compared to the anticipated $1.98 billion. Additionally, APA Corporation has made notable progress in reducing its debt, decreasing its net debt by $1.4 billion to $4.4 billion over three months. In light of this debt reduction, CFRA has raised its price target for APA stock to $22.00 from $19.00, while maintaining a Hold rating. These recent developments highlight the company’s financial improvements and strategic efforts in managing its debt.

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