APA (APA – Research Report), 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 $28.00 price target.
David Deckelbaum has given his Hold rating due to a combination of factors influencing APA’s financial and operational outlook. Despite APA’s strong quarterly performance, with production and EBITDAX exceeding expectations, the company’s future projections include a slight decline in oil estimates. This is partly due to the company’s strategic focus on cost-saving initiatives and efficiency improvements, particularly in the Permian region.
APA’s guidance for FY25 includes significant capital expenditure plans and a company-wide cost-cutting initiative aimed at reducing overhead and improving operational efficiencies. While these measures are expected to yield substantial cost savings by the end of 2027, the current debt levels and the integration of CPE assets present challenges. These factors contribute to a cautious outlook, justifying the Hold rating as the company navigates these strategic changes.
According to TipRanks, Deckelbaum is an analyst with an average return of -2.1% and a 37.29% success rate. Deckelbaum covers the Energy sector, focusing on stocks such as Diamondback, Conocophillips, and Devon Energy.