MM’s view on APA,
Do you think the share price of APA has bottomed? Is it worthwhile to buy more to average out the cost.
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Answer
Hi Gregory,
We’ll cover our general view on APA and link that to what we are doing in our portfolio, the decision on your portfolio is yours i.e. general rather than personal advice provided on this forum.
After a tough couple of years for APA, we still like the stock here. We have a 5% weighting in our income portfolio, with our maximum weighting for APA being 6%.
- The stocks has rallied this week following a broker upgrade by Barrenjoey who raised the stock to overweight from neutral with a price target of $8.60 – i.e. 23% above Fridays close. We support their rationale for doing so.
APA is set to yield over ~8% around 400bps above the 10 year yield – this is very high from a historical context.
