APA Corp. initiated with an Outperform at William Blair

William Blair initiated coverage of APA Corp. (APA) with an Outperform rating and $32 fair value estimate, which offers 31% upside. The firm believes the company has a “unique” asset base that should “play an important role as domestic shale inventory likely continues to decline.” APA’s size, improved operational efficiency, and revised development strategy should drive solid results, the analyst tells investors in a research note. Blair believes APA could merge with the upstream division of Repsol.