APA – Credit Suisse rates the stock as Downgrade to Underperform from Outperform

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Following confirmation from the Foreign Investment Review Board that the CKI bid will not proceed, Credit Suisse downgrades to Underperform from Outperform.

Another takeover bid remains a key risk but the broker believes this recedes with every passing week and a difficult outlook remains.

The broker adjusts carrying values and increases estimates for the weighted average cost of capital, in line with government bond yields. Target is reduced to $7.65 from $11.00.

Sector: Utilities.

Target price is $7.65.Current Price is $8.59. Difference: ($0.94) – (brackets indicate current price is over target). If APA meets the Credit Suisse target it will return approximately -12% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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