Wells Fargo analyst Roger Read has maintained their neutral stance on APA stock, giving a Hold rating yesterday.
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Roger Read has given his Hold rating due to a combination of factors including expectations for APA’s Q2’25 performance and ongoing cost reduction efforts. The company is anticipated to beat EBITDAX estimates while maintaining production levels in line with guidance. However, challenges such as lower commodity price realizations and higher operating expenses have led to adjustments in financial projections.
Additionally, while there is progress in cost reduction initiatives, with a projected $225 million annualized exit rate by 2025, the U.S. per unit lease operating expenses remain high. The company’s capital expenditure is also weighted towards the first half of 2025, with a decrease expected in the latter half. These factors contribute to a cautious outlook, justifying the Hold rating despite some positive developments in well productivity and international operations.
According to TipRanks, Read is a 2-star analyst with an average return of 0.2% and a 49.70% success rate. Read covers the Energy sector, focusing on stocks such as Ovintiv, EOG Resources, and EQT.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $21.00 price target.