APA, the Energy sector company, was revisited by a Wall Street analyst today. Analyst David Deckelbaum from TD Cowen maintained a Hold rating on the stock and has a $20.00 price target.
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David Deckelbaum has given his Hold rating due to a combination of factors that impact APA’s financial outlook. The company’s recent third-quarter supplemental report showed oil pricing aligning with expectations, but natural gas and NGL prices were lower than anticipated. Additionally, while APA received a significant payment from the Egyptian government for past receivables, a portion of this payment will be directed to non-controlling interests, slightly affecting the free cash flow for the quarter.
Moreover, APA’s decision to curtail natural gas production due to weak Waha hub prices further influences the financial results. Although the estimated U.S. and international oil prices were in line with projections, the overall impact of these factors led to a reduction in the third-quarter free cash flow and a decrease in EBITDA estimates. These elements combined contribute to maintaining a Hold rating, with a price target of $20 per share.
In another report released yesterday, Roth MKM also maintained a Hold rating on the stock with a $22.00 price target.