APA Corp. upped to Buy at Mizuho in optimistic forecast for oil E&P stocks
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APA Corp. (NASDAQ:APA
+0.6%) popped to a 52-week high Thursday before pulling back after Mizuho upgraded shares to Buy from Neutral with a $56 price target, up from $38, saying the company is in a "unique spot" among oil and gas producers, with a "clear plan for 10%-plus cash return 2022-24 at current oil prices along with near-term growth (Egypt) and longer-term development (Suriname) catalysts outside the U.S."
The upgrade is part of Mizuho's continuing positive view on the E&P group, with the firm hiking stock price targets for 12 additional Buy-rated companies in its coverage by 35% on average, with PTs now implying 41% upside: COP to $150 from $115, CLR to $72 from $59, CTRA to $38 from $29, DVN to $89 from $61, FANG to $233 from $145, EOG to $172 from $124, HES to $139 from $132, MRO to $35 from $23, MUR to $58 from $42, OXY to $85 from $78, OVV to $78 from $54, and PXD to $343 from $266.
In an analysis written five weeks ago, Seeking Alpha contributor Andrew Hecht foresaw "lots of potential upside" for APA shares.