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What Do Analysts Recommend for Apache Pre-1Q16 Earnings Release?

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Analysts’ recommendations for Apache

In the weeks leading up to Apache’s (APA) 1Q16 earnings release, Wall Street analysts have provided target prices for the next 12 months.

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Consensus rating for Apache

About 33% of Wall Street analysts rate Apache (APA) a “buy,” ~55% rate it a “hold,” and ~12% rate it a “sell.” The average broker target price of $48.72 for Apache implies a return of around 15% in the next 12 months.

Upstream peers Cimarex Energy (XEC), Concho Resources (CXO), and Hess (HES) have average broker target prices of $107.21, $116.90, and $60.04, respectively. These figures imply returns of -3.6%, -1.6%, and -5%, respectively, in the next 12 months.

High, low, and median analyst target prices for Apache are $65, $33, and $50, respectively. Apache is a component of the iShares US Oil & Gas Exploration and Production ETF (IEO). IEO invests ~4% of its portfolio in the company.

Analysts’ target prices for APA

Raymond James and Tudor, Pickering, Holt & Co. gave Apache some of the most optimistic target prices, of $65 and $59, respectively. These imply returns of around 16% and 6% in the next 12 months.

Credit Suisse (CS) and RBC Capital Markets gave APA lower target prices, of $55 and $54, respectively. These imply returns of around -1.6% and -3.3% in the next 12 months.

Evercore ISI and Capital One Securities gave APA lower target prices of $47 and $44, respectively, implying returns of around -16% and -21% in the next 12 months. One of the lowest targets was given by Jefferies, which gave Apache a target price of $35. This implies returns of -37% over the next year.

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