Susquehanna Financial Group has revised its price target for APA Corporation (APA, Financial), reducing it to $30 from a previous $31, while maintaining a Positive outlook on the stock. This adjustment comes as the firm reevaluates its oil price expectations for the coming years. It now anticipates that the price of oil will hover around $68 per barrel in 2025 and around $67 per barrel in 2026 and beyond.
Contributing to these lowered price assumptions are global factors impacting oil demand. Increased tariffs have weakened the global demand outlook, leading to reduced oil prices as the second quarter begins. Additionally, concerns over a potential global recession are further dampening demand.
Compounding these market dynamics, OPEC+ is commencing the rollback of its voluntary production cuts, which previously stood at 2.2 million barrels per day. This move began in April and is set to reintroduce a substantial amount of oil supply into the market, potentially influencing future pricing.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 26 analysts, the average target price for APA Corp (APA, Financial) is $24.30 with a high estimate of $36.00 and a low estimate of $14.00. The average target implies an upside of 56.76% from the current price of $15.50. More detailed estimate data can be found on the APA Corp (APA) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, APA Corp's (APA, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for APA Corp (APA, Financial) in one year is $28.35, suggesting a upside of 82.9% from the current price of $15.5. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the APA Corp (APA) Summary page.
