Credit Suisse Reinstates APA Coverage; OP Rating, $129 Target

Credit Suisse is reinstating coverage of Apache Corporation (NYSE: APA) with an Outperform rating and a target price of $129 (up from $105).

“This is based on a 5.5x multiple applied to 2013E hedged EBITDAX, which we are now introducing for our large cap universe,” Credit Suisse writes.

“APA offers a unique combination of free cash flow generation along with per share growth, trades well below the group and has a strong medium-term outlook due to its robust asset base. Also, APA's low borrowing rate could offer attractive consolidation opportunities.”

Credit Suisse is raising its 2010/11/12 EPS by 7%/3%/3% following the Mariner acquisition and an updated outlook on growth and costs.

Apache Corporation currently trades at $118.10.