BMO Capital Raises APA Outlook as Oil Hinges on Iran Conflict Outcome

APA Corporation (NASDAQ:APA) is included among the 15 Best Cheap Dividend Stocks to Buy.

BMO Capital Raises APA Outlook as Oil Hinges on Iran Conflict Outcome

On April 7, BMO Capital raised its price recommendation on APA Corporation (NASDAQ:APA) to $47 from $35. It kept a Market Perform rating. The update came as part of a broader research note. The firm adjusted its models with updated Q1 mark-to-market assumptions. These changes reflect the war in Iran and continued oversupply in the North American natural gas market. The analyst said oil and equity markets are sitting at a critical point, waiting for the next move from Donald Trump.

If the conflict ends and flows through the Strait of Hormuz, oil prices could settle in a $75-$85 per barrel range. If tensions rise and the Strait remains shut, prices could climb to $150-$200 per barrel, the analyst tells investors in a research note. BMO added that the economic cost of a prolonged conflict would be too high. The firm expects the war to wind down by the end of April.

APA Corporation (NASDAQ:APA) is an independent energy company. It owns subsidiaries that explore for and produce oil and natural gas in the United States, Egypt, and the United Kingdom, and also explores offshore Suriname.

While we acknowledge the risk and potential of APA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Blue Chip Stocks with Highest Dividends and 13 Bank Stocks with Highest Dividends

Disclosure: None. Follow Insider Monkey on Google News.