Overview
RBC Capital has lifted its target price for APA Corp. (NASDAQ:APA) to $26.00 from $25.00 and has maintained a Sector Perform rating on the stock. APA is trading at $25.80, which the firm notes sits roughly 7% below the company's 52-week peak of $27.72.
Operational trends and valuation
The research note from RBC points to a string of stronger quarters and greater operational consistency at APA, saying the company is "turning the ship." That operational momentum is reflected in a reported price-to-earnings ratio of 6.25 and a dividend yield of 3.88%. Data from InvestingPro cited in the note shows APA has sustained dividend payments for 56 consecutive years.
Near-term catalysts
RBC identified several catalysts that could influence investor sentiment going forward. Chief among these is an upcoming Permian inventory and economic update that the firm expects during APA's fourth-quarter 2025 earnings call and anticipates a favorable reception from the market. The research note also stated exploration activities could receive meaningful attention during that same call.
Investor conversations highlighted in the note center on several topics: the duration of Permian inventory, Egyptian gas exploration and production along with pricing dynamics, other international exploration prospects, and the company’s efforts to discipline controllable spending while improving operations.
Cost reductions and strategic moves
APA has reportedly exceeded its cost reduction targets, realizing $300 million in savings year-to-date, and now projects $350 million in run-rate savings by the end of 2025, ahead of its prior timeline. In parallel strategic activity, the company has entered into an agreement with Stonepeak to sell its stake in the Australian gas network Allgas, with the deal expected to close by 2026. Allgas serves about 120,000 households and businesses in Queensland, Australia.
Analyst landscape
The stock has been the subject of multiple analyst moves. Wolfe Research cut its price target to $35 while maintaining an Outperform rating and citing the company’s undervaluation within the energy sector. William Blair began coverage with an Outperform rating and a $32 price target, pointing to APA’s sizable asset base. Raymond James reaffirmed an Outperform rating and referenced possible merger discussions with Repsol. Separately, a note in the recent coverage said RBC Capital increased its price target to $25, pointing to stronger free cash flow forecasts and a better production outlook.
Implications for investors
Taken together, these updates sketch a company that has improved operationally and is executing on cost reductions and asset sales while sitting near its 52-week high. Analysts remain varied in their assessments, with multiple Outperform ratings alongside RBC’s Sector Perform stance and the differing price targets reflected across the notes.
This article presents the analyst actions, financial metrics and company developments as reported in recent research and corporate disclosures.