Thoughts on APA Group (APA) please

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Question asked 23/02/2024

Thoughts on APA Group (APA) please

Hi MM Team, Thank you for all your hard work and insights. Just wanted to get your thought on the outlook for APA Group and if you think it's a buy into weakness around $8?

Answer

Hi Tam,

We covered APA on Thursday afternoon in our “The Match Out Report” after they reported 1H24 solid earnings (EBITDA) of $840m and a 26.5cps dividend. The regulated utility said they were on track to deliver full-year underlying EBITDA of $1.87-1.91bn versus the current consensus of $1.876bn, along with a FY24 dividend of 56cps, putting it on a 6.8% yield.

A steady result with no surprises – we continue to think APA represents great value at current levels for more defensive, income focussed portfolios/investors – MM remains long APA in our Active Income Portfolio.

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APA Group (APA)

LAST UPDATED 22/02/2024 16:40

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