deutsche bank rates apa as buy

Deutsche Bank rates APA as Buy
Wednesday, June 4, 2014 - 11:20

June 4, 2014

The broker visited the company's WA gas storage facility and was impressed with the growth opportunities. The company's dominant pipeline position provides unique leverage to shifting gas markets with gas storage an emerging source of new revenue.

Deutsche Bank retains a Buy rating and elevates the company to its preferred sector exposure. The broker awaits APA's response to the Envestra ((ENV)) counter bid from CKI. The price target is raised to $7.50 from $6.85.

Target price is $7.50 Current Price is $7.02 Difference: $0.48
If APA meets the Deutsche Bank target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June. Deutsche Bank forecasts a full year FY14 dividend of 37.00 cents and EPS of 23.00 cents. At the last closing share price the estimated dividend yield is 5.27%.

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.52.