APA continues to trade around the psychological $9 area, near its 2-year high, and almost 40% above its 2025 low. The stock is well supported by its sustainable yield of more than 6.5%, part franked. However, while the utility delivered a solid FY25 result in August, the upside rerating is likely to be in the rear-view mirror, and our holding is no longer marked as “Active” in our Active Growth Portfolio; the position is a potential candidate as a funding vehicle moving forward (for the growth strategy only).
- We continue to like this utility as a yield-sensitive defensive position as interest rates are expected to decline, or at least remain stable: we hold APA in our Active Growth and Income Portfolios.
MM is long and bullish towards APA for yield
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