Apache (APA) gets a $133 price target, worth an 11% premium from Goldman Sachs. The company is one of the largest U.S.-based independent explorers and producers of natural gas, crude oil and natural gas liquids.
Apache gets about 25% of its production and cash flow from its operations in Egypt, and although there have been no production disruptions so far due to that country's current political unrest, there is a potential.
After a few years of relative inactivity on the acquisition front, Apache recently announced three sizable deals -- a $4 billion merger with Mariner Energy and $8 billion in combined asset purchases from BP (BP) and Devon Energy (DVN) -- and "that should provide near-term exploitation opportunities as well as longer-term exploration potential and help the firm increase production and reserves throughout our forecast period," said a Morningstar research note.For fiscal 2010, analysts estimate that Apache will earn $9.25 per share, and that will expand by 20% to $11.10 in fiscal 2011. S&P analysts' poll resulted in nine "buy" ratings, 10 "buy/holds," eight "holds" and one "sell." Capital Research Global and State Street each own about 4% of outstanding shares. Its shares are down 2% this year, including a decline of 6% in the past week. They gained 16% in 2010.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV