Roth Capital analyst Leo Mariani upgraded APA Corporation from Neutral to Buy and raised the price target from $37 to $38, implying over 14% upside. The upgrade came as part of a broader call on the exploration and production sector, with the firm noting that global crude prices appear to be nearing a short-term bottom and that many oil E&P stocks have fallen 15% to 25% from year-to-date highs, creating more attractive valuations. Roth expects lasting damage to key Middle East oil infrastructure and additional volumes through the Strait of Hormuz, but believes these factors are already priced in, projecting oil prices to stabilize around $75 per barrel in the near term.
APA CorporationRoth Capital upgraded APA to Buy and raised price target to $38, citing attractive valuations and expected oil price stabilization.