Selected stock price target news of the day - October 2nd, 2024

By: Matthew Otto

APA Faces High Stakes with $10.5 Billion Commitment to Suriname’s Block 58 Project

APA Corporation and TotalEnergies announced a final investment decision (FID) for Suriname’s Block 58 oil and gas project, with development costs projected at $10.5 billion. This project, which is expected to begin production in the first half of 2028, will tap into the Sapakara and Krabdagu fields, now collectively named Gran Morgu.

APA’s CEO John Christmann emphasized the potential of the Atlantic Margin’s deep waters, pointing to large discoveries in Suriname, Guyana, and Brazil. The project aims to recover an estimated 700 million barrels of oil, and APA is responsible for drilling 32 new wells under the approved field development plan. A Floating Production Storage and Offloading (FPSO) facility with a capacity of 200,000 barrels per day is currently being constructed in Asia for the project.

APA’s financial commitment to the project includes a $7 billion contract, which covers collaborations with companies such as SBM Offshore and Saipem for energy infrastructure. Staatsolie, Suriname’s state energy company, holds a 20% stake in the project and has already secured a $175 million payment to meet its financial obligations. Staatsolie is currently in discussions with banks to raise additional capital and plans a bond offer to complete the funding by December next year.

Analysts Cut Price Targets Despite Maintained Ratings

Wells Fargo analyst Roger Read maintained an Overweight rating, while lowering the price target from $49 to $47.
Evercore ISI Group analyst Stephen Richardson kept an In-Line rating but reduced the price target from $39 to $33.
Truist Securities analyst Neal Dingmann maintained a Buy rating, although decreased the price target from $46 to $34.

Which Analyst has the best track record to show on APA?

Analyst Bob Brackett (BERNSTEIN) currently has the highest performing score on APA with 2/3 (66.67%) price target fulfillment ratio. His price targets carry an average of $-2.22 (-6.89%) potential downside. APA Corporation stock price reaches these price targets on average within 10 days.

Integer Holdings Sells Electrochem to Ultralife in Strategic Shift

Integer Holdings Corporation has announced the divestiture of its Electrochem business to Ultralife Corporation for $50 million in cash, pending customary working capital adjustments.

Electrochem, which serves non-medical sectors such as energy, military, and environmental markets, will be sold as part of Integer’s strategy to focus exclusively on the medical device sector. The transaction is expected to close by the end of October 2024.

This deal allows Integer to generate additional cash for debt repayment and to support its inorganic growth strategy. In its 2024 guidance, Integer had projected sales of $36 million, GAAP operating income of $3 million, and adjusted EBITDA of $5 million for its non-medical segment, including Electrochem.

Following the divestiture, Integer will report Electrochem as part of discontinued operations, reflecting any gain or loss from the sale. Integer expects the impact on earnings per share (EPS) to be neutral. Non-GAAP adjusted EPS for the segment was previously estimated at $0.02, while GAAP EPS was projected to remain at $0.00.

Mixed Analyst Ratings with Price Target Increases

Citigroup analyst Joanne Wuensch maintained a Neutral rating, but raised the price target from $124 to $130.
BofA Securities analyst Craig Bijou maintained a Buy rating, and increased the price target from $135 to $145.
Truist Securities analyst Richard Newitter reiterated a Buy rating while raising the price target from $137 to $145.

Which Analyst has the best track record to show on ITGR?

Analyst Joanne Wuensch (CITI) currently has the highest performing score on ITGR with 3/3 (100%) price target fulfillment ratio. Her price targets carry an average of $2.43 (2.00%) potential upside. Integer Holdings Corporation stock price reaches these price targets on average within 36 days.

Interim Phase 2 Study Results of GRANITE in Frontline MSS-CRC Patients

Gritstone bio, released interim data from its ongoing Phase 2 study evaluating GRANITE, an individualized neoantigen targeting immunotherapy, in patients with frontline microsatellite stable colorectal cancer (MSS-CRC).

The results indicate a 21% relative risk reduction in progression or death for all patients treated with GRANITE compared to the control group (Hazard Ratio [HR]=0.79; 95% Confidence Interval [CI], 0.42-1.50). Notably, in the low circulating tumor DNA (ctDNA) subgroup, which comprises approximately 50% of the patient population, the relative risk reduction was even more pronounced at 38% (HR=0.62; 95% CI, 0.23-1.70).

Overall, 33% of patients in the GRANITE arm (13 out of 39) and 23% of control patients (7 out of 30) remain on study without disease progression. Continuous follow-up is necessary to assess the full impact of GRANITE, particularly among patients with low ctDNA levels, where disease events accumulate at a slower rate.

The safety profile of GRANITE appears favorable, with no treatment discontinuations due to adverse events, and common side effects were mild, including transient flu-like symptoms. One serious adverse event related to treatment, fatigue, was reported but did not lead to treatment discontinuation.

Furthermore, functional neoantigen-specific T cell responses were observed in all 16 GRANITE patients tested, suggesting a correlation between T cell activity and progression-free survival (PFS). Gritstone anticipates the release of overall survival data in the second half of 2025 and plans to engage with the FDA to discuss next steps for advancing GRANITE, potentially including a Phase 2 or 3 trial that incorporates ctDNA levels as an eligibility criterion.

Analyst Downgrades Amid Concerns Over Performance

Jones Trading analyst Catherine Novack has downgraded from Buy to Hold.
B. Riley Securities analyst Mayank Mamtani downgraded from Buy to Neutral and the price target from $3 to $1.
HC Wainwright & Co. Sean Lee downgraded from Buy to Neutral and the price target from $4 to $0.50.
Roy Buchanan of JMP Securities has downgraded from Market Outperform to Market Perform.

Which Analyst has the best track record to show on GRTS?

Analyst Sean Lee (HC WAINWRIGHT) currently has the highest performing score on GRTS with 1/7 (14.29%) price target fulfillment ratio. His price targets carry an average of $5.18 (284.62%) potential upside. Gritstone bio stock price reaches these price targets on average within 5 days.