APA rallied +1.1% on Monday, testing its 2025 high on a day when the ASX came under pressure. We have discussed APA a few times recently, holding onto an unwavering bullish view. Australia’s largest energy infrastructure company is expected to yield around 7% over the next 12 months, growing steadily over the coming decade. The rate differential is clearly attractive with expectations of a cash rate nearer 3% by Christmas. This morning, APA have reconfirmed earnings guidance at the Macquarie conference, ahead of reporting towards the end of August, with the bar not as low as it was in February.
Like AGL Energy, APA is actively involved in Australia’s energy transition, investing in renewable energy projects such as wind and solar farms. The company inaugurated the 88MW Dugald River Solar Farm in Queensland, Australia’s largest remote solar project, featuring 184,000 solar panels.
- We continue to like APA for yield and capital growth, still targeting the $9 area: MM owns APA in its Active Growth Portfolio and Active Income Portfolio.
MM is long and bullish APA
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