On Monday analysts at JP Morgan reported that they lowered the price target on oil and natural gas company Apache Corporation (APA) while maintaining its “Overweight” rating.
The analysts cut the price target for Apache from $103 to $90.50. The new valuation is a +17.5% upside to Friday’s closing price of $77.02.
JP Morgan noted, “APA’s relatively strong balance sheet, strong cash margins, and diversified asset base mean that the company generally has lower risk relative to the group. The name also has comparatively limited exposure to U.S. natural gas. However, APA faces country risk where it operates internationally, especially Egypt, Argentina, the U.K., and Australia. In fact, we think the stock underperformed last year largely due to the market’s concern about turmoil in Egypt.”
Apache shares were up 7 cents, or +0.09%, during morning trading on Monday. The stock is down -14.85% year-to-date.
The Bottom Line
Shares of Apache Corp (APA) have a .88% dividend yield, based on Friday’s closing stock price of $77.02. The stock has technical support in the $71-$74 price area. If the shares can firm up, we see overhead resistance around the $80-$83 price levels.
Apache Corporation (APA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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