Bank of America's Akamine Remains Bearish on APA Corporation (APA), Cites High Operating Costs

APA Corporation (NASDAQ:APA) is one of the 12 deep value stocks to invest in.

On November 6, 2025, Bank of America Securities’ analyst Kalei Akamine maintained his “Sell” rating on APA Corporation (NASDAQ:APA) with a $20 price target. His bearish outlook stems from concerns over the company’s higher operating costs in the Permian Basin, North Sea decommissioning liabilities, and uncertainty regarding 2026 oil prices. These factors, combined, could put pressure on margins, he noted. Despite the company’s efforts to reduce costs, debt, and improve operational gains in Egypt and the Permian, Akamine believes the company’s valuation is above the firm’s price target.

While Akamine maintains his bearish sentiment on the stock, APA Corporation (NASDAQ:APA) reported strong Q3 2025 results on November 5, 2025. The company reported adjusted earnings of $332 million ($0.93 per share) with $1.5 billion in operating cash flow. The quarter marked production that was above guidance across all regions, a reduction in net debt of $430 million, and a cost savings target revised to $350 million by the end of 2025, two years earlier than planned.

APA Corporation (NASDAQ:APA) is focused on exploration and production of oil and natural gas across the U.S., Egypt, the U.K., and offshore Suriname.

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