Scotiabank reaffirmed its Sector Perform rating on Apache Corp (NASDAQ) with a price target of $30.00 after reviewing Apache’s latest quarterly information. Apache’s adjusted EPS and CFPS are projected at $0.93 and $2.99, respectively. The company reported higher-than-expected dry hole expenses and favorable outcomes in Egypt, with tax barrels surpassing guidance. Apache’s recent strategic moves include repurchasing shares, selling non-core assets for $700 million, and curtailing gas production due to pricing. Other analysts have provided varied ratings and price targets for Apache.
Apache Corp (NASDAQ) can be considered a good investment for several reasons:
- Valuation: Apache has a low Price/Earnings (P/E) ratio of 3.51, suggesting it is undervalued relative to its earnings potential.
- Profitability: The company maintains a strong operating income margin of 38.96% and has been profitable over the last twelve months.
- Shareholder Returns: Apache has a long track record of paying dividends, currently yielding 3.34%, and has repurchased 1.5 million shares to return value to shareholders.
- Strategic Moves: Apache has been actively managing its portfolio, selling non-core assets for $700 million to reduce debt and improve financial flexibility.
These factors indicate a solid financial position and potential for future growth.
