Mizuho Securities analyst William Janela has maintained their bearish stance on APA stock, giving a Sell rating on February 28.
William Janela has given his Sell rating due to a combination of factors affecting APA’s performance and outlook. One of the primary reasons is the company’s lower-than-expected US oil volume guidance for 2025, which falls short of previous estimates and consensus expectations. This reduction in guidance is seen as a misstep, especially when compared to the initial projections made in November.
Additionally, APA’s efforts to reduce costs have not met the anticipated targets. The 2025 guidance suggests a 7% reduction in unit cash operating expenses, which is below the 10-15% target previously communicated. Furthermore, the plan to achieve $350 million in annual savings by the end of 2027 is considered a long-term goal that requires significant execution. Despite maintaining its capital expenditure budget, APA’s shares have underperformed compared to peers, and the company’s valuation appears stretched, leading to a high bar for successful execution in the coming years.
According to TipRanks, Janela is a 4-star analyst with an average return of 13.5% and a 44.44% success rate. Janela covers the Energy sector, focusing on stocks such as APA, Northern Oil And Gas, and Crescent Energy Company Class A.
In another report released on February 28, Morgan Stanley also maintained a Sell rating on the stock with a $26.00 price target.