Apa Corporation Intrinsic Value Calculator – Truist lowers price target on APA Corp. to $33 following inline Q3 results, maintains Buy rating

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APA ($NASDAQ:APA) Corporation is an American oil and gas exploration and production company that operates internationally. It is one of the largest independent energy companies in the world, with operations in the United States, Egypt, and the United Kingdom. APA Corp. is listed on the New York Stock Exchange under the ticker symbol APA. Recently, Truist, a leading financial services firm, announced that it has lowered its price target for APA Corp. to $33 from $36. This comes after the company reported its third-quarter results, which were in line with expectations. Despite the price target revision, Truist maintains its Buy rating on the shares of APA Corp. One of the key factors that led to Truist’s decision to lower the price target for APA Corp. is the company’s Q3 results. Truist also highlighted APA Corp.’s strong operational performance in its report. This was mainly driven by higher production in its Permian and Egypt operations.

However, Truist also noted some concerns regarding APA Corp.’s debt levels and free cash flow generation. APA Corp. has a solid inventory of drilling locations in the Permian and Egypt, which can drive production and cash flow growth in the coming years.

Additionally, the company has taken steps to reduce its debt levels and improve its balance sheet, which can enhance its financial flexibility. However, the firm maintains its Buy rating on the shares, citing APA Corp.’s strong operational performance and potential for future growth. Investors should closely monitor the company’s debt levels and free cash flow generation, which can impact its financial health in the long run.

Price History

On Tuesday, APA CORPORATION, a leading energy company, saw its stock open at $23.73 and close at $23.55, experiencing a slight increase of 0.04% from its previous closing price of $23.54. This came after the company reported its third quarter results, which were in line with expectations. Despite this, Truist, a financial services company, has lowered their price target for APA Corp.’s stock to $33, while maintaining a Buy rating.

However, it is important to note that Truist is taking into consideration several factors such as market conditions, industry trends, and potential risks that may affect the company’s performance in the future. By maintaining a Buy rating, Truist is signaling that they still see potential for growth in APA Corp.’s stock. It is also worth noting that the current price target of $33 is still significantly higher than the current stock price of $23.55. This suggests that Truist believes that APA Corp.’s stock has room for growth and may be undervalued at its current price. Investors may be wondering why Truist has chosen to lower their price target despite maintaining a positive outlook on the company. This could be due to various factors such as changes in market conditions or adjustments in their valuation model. It is common for financial analysts to regularly review and update their price targets based on new information and developments in the market. Despite the decrease in price target, Truist’s Buy rating could provide some reassurance to investors. In conclusion, Truist’s decision to lower APA Corp.’s price target to $33 following their inline Q3 results may seem conflicting, but it is a reflection of various factors that could potentially impact the company’s performance in the future. However, their Buy rating shows that they still see potential for growth in APA Corp.’s stock. Investors should carefully consider all factors before making any investment decisions regarding APA Corp.’s stock. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Apa Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Apa Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Apa Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Apa Corporation are shown below. More…

Analysis – Apa Corporation Intrinsic Value Calculator

As a team at GoodWhale, we have conducted an in-depth analysis of APA CORPORATION‘s fundamentals and have come to some key conclusions about the company’s fair value and current stock price. Based on our proprietary Valuation Line, we have determined that the fair value of APA CORPORATION’s share is approximately $34.8. This takes into account various factors such as the company’s financial performance, industry trends, and market conditions. However, at its current trading price of $23.55, APA CORPORATION’s stock is undervalued by 32.3%. This means that there is potential for investors to see a significant return on their investment if they were to purchase shares at this price. Our analysis also takes into consideration the strengths and weaknesses of APA CORPORATION as a company. We have identified several positive aspects, such as their strong financial performance and positioning within their industry. However, there are also certain concerns, such as potential competition and changes in market conditions that could impact the company’s future performance. Overall, we believe that APA CORPORATION has a strong potential for growth and its current undervalued stock price presents a buying opportunity for investors. As always, we recommend further research and due diligence before making any investment decisions. More…

Peers

The company has operations in the United States, Canada, and Australia. Pioneer Natural Resources Co, Continental Resources Inc, Hess Corp are some of APA Corp’s main competitors in the oil and gas industry.

– Pioneer Natural Resources Co ($NYSE:PXD)

Pioneer Natural Resources Co is an American oil and gas exploration and production company with operations in the United States, Canada, and Trinidad and Tobago. The company has a market capitalization of $59.39 billion and a return on equity of 24.61%. Pioneer Natural Resources is engaged in the exploration, development, and production of oil and gas properties. The company was founded in 1997 and is headquartered in Irving, Texas.

– Continental Resources Inc ($NYSE:CLR)

Continental Resources Inc is an American petroleum and natural gas exploration and production company with operations in the Bakken formation of North Dakota, Montana, and southern Saskatchewan. The company has a market cap of 26.94B as of 2022 and a Return on Equity of 32.98%. Continental Resources is one of the largest crude oil producers in the United States and is one of the leading operators in the Bakken formation.

– Hess Corp ($NYSE:HES)

Hess Corporation is an American multinational oil and gas company with operations in the United States, Canada, the North Sea, South America, and Africa. The company is headquartered in New York City and has been in operation since 1933. Hess is one of the largest independent oil and gas companies in the world with a market capitalization of $44.39 billion as of 2022. The company’s return on equity is 31.73%.

Hess Corporation is engaged in the exploration, production, purchase, transportation, and sale of crude oil and natural gas. The company also refines, markets, and supplies petroleum products. Hess operates through two segments: Upstream and Downstream. The Upstream segment explores for, develops, produces, transports, and sells crude oil and natural gas. The Downstream segment refines crude oil into finished petroleum products; markets and supplies refined products; and engages in trading operations.

Summary

Truist has updated their price target on APA Corporation, lowering it to $33 from $36. Despite this, they are maintaining a Buy rating on the company’s shares following its Q3 results which were in line with expectations. This suggests that Truist believes there is still potential for growth and value in APA Corporation.

However, it is important for investors to consider all factors before making any investment decisions. The company’s financials, industry trends, and market conditions should all be taken into account to make an informed investment analysis. Ultimately, investors should carefully weigh the risks and potential rewards before investing in APA Corporation.