Zacks Investment Research downgraded shares of Apache Corporation (APA) from NEUTRAL to UNDERPERFORM on January 22, 2015, with a target price of $57.00.
We are downgrading Apache Corporation to Underperform from Neutral with a target price of $57. Being a firm in the exploration and production industry, Apache's profitability is expected to take a beating in this weakly-priced oil and gas market. Moreover, as the company derives the bulk of its production from crude oil, it is likely to suffer in the upcoming quarters as the commodity is not expected to see any drastic improvement in the next few months. Moreover, though asset sales help the company in improving financials, it could lower production volumes. As such, we do not see any significant upside for the company in the near term.
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