Ann: APA 2022 Investor Morning, page-12

ESG Focus: APA Group Pushes Gas Prospects

Brokers Have Their Say
Meanwhile, Morgan Stanley notes the share prices has rallied 13% this year, which compares with a flat performance for toll roads and airports – the closest peers – and retains an Equal-weight rating (Industry View: Cautious) and $10.00 target price.The broker appreciates the company’s defensive and diversified earnings base and balance sheet.The company’s risk-reward profile falls in the middle of the broker’s utilities and infrastructure stock coverage. Rising global interest rates remain a risk, as does ESG sentiment, valuation, regulatory changes, shipping recontracting and large corporate activity.

Ord Minnett notes APA management reiterated that 80% to 90% of revenue is linked to the consumer price index, lending strong defensive characteristics in the current market, believing the company’s finances could benefit from rising inflation.The broker retains a Hold recommendation and $10.50 target price.
All up, in the FNArena database, APA Group is enjoying four Hold ratings with an average target price of $9.925. On forward looking consensus estimates, the shares are currently offering a dividend yield of 4.8% (running year) and 5.1% for FY23.