APA is our preferred defensive infrastructure stock on the main board. The utility is estimated to yield approximately 7.5% over the next 12 months, which is particularly attractive given the expectation of further interest rate declines leading into Christmas. Last month’s results from APA were better than feared, resulting in a 15% re-rating on the upside for the stock. However, we believe the stock has further room to grow, with a target of the $9 area, plus an attractive yield along the way.
- We believe the defensive orientated APA is cheap under $7.50 as uncertainty looms for stocks —MM holds APA in our Active Income Portfolio and Active Growth Portfolio.
MM is long and bullish APA
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