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RBC Capital Raises APA Target as Oil Strength and Earnings Momentum Support Shares

APA Corporation (NASDAQ:APA) is included among the 14 Low PE High Dividend Stocks to Buy Right Now.

On March 5, RBC Capital raised its price recommendation on APA Corporation (NASDAQ:APA) to $29 from $26. The firm reiterated a Sector Perform rating on the shares. The analyst said the stock has been supported by strong oil prices, given its close beta correlation to oil. APA also reported solid Q4 earnings and guidance last week, which added to the positive momentum, according to the research note. The firm still holds a neutral view on the shares. RBC pointed to longer-dated catalysts, relative valuation, and the company’s shorter inventory duration as factors behind that stance.

During the company’s Q4 2025 earnings call, CEO John Christmann described 2025 as a very successful year for APA. He said the period was marked by steady progress on the company’s strategic priorities and strong execution across its asset base. Christmann also highlighted the company’s cost discipline. He noted that APA had originally set a goal of cutting controllable spending by $350 million on a run-rate basis by the end of 2027.

According to him, the company exceeded that target much earlier than planned. It now expects to exit 2026 with a run rate of about $450 million. Christmann also said APA met or exceeded its oil production guidance in the Permian every quarter during 2025. This happened even as the company operated with a capital budget that came in lower than initially planned. He added that APA made meaningful progress in evaluating its Permian Basin inventory. That work, he said, has strengthened confidence in the company’s ability to sustain long-term oil production while improving capital efficiency.

Turning to Egypt, Christmann said more focused activity under a revised gas pricing framework supported solid production growth. He indicated that gas output in the region is expected to reach roughly 540 million to 550 million cubic feet per day this year.

APA Corporation (NASDAQ:APA) is an independent energy company. The company owns subsidiaries that explore for and produce oil and natural gas in the United States, Egypt, and the United Kingdom, and that explore for oil and natural gas 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: 40 Most Popular Stocks Among Hedge Funds Heading into 2026 and 14 Best American Dividend Stocks to Invest In

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