On Monday analysts at JP Morgan reported that they lowered the
price target on oil and natural gas company Apache Corporation (
) 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 (
) 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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.1 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
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