Australia's APA Group rises as Citi initiates coverage with 'buy' rating

APA

04/06/2026 02:30

Updates
** Shares of APA Group APA.AX rise as much as 1.6% to A$10.29, posting their biggest intraday pct gain since May 19

    ** Stock touches highest level since May 26
  
** Citi initiates coverage on Australia's largest gas pipeline and energy infrastructure owner
** Brokerage rates stock "buy" with target price of A$11.10
** Citi says it likes co's secure, high-margin, CPI-linked income and strong customer base
** Says surging demand for data centres is also possible growth avenue for APA as it sees "scope for significant near- and medium-term growth here"
** Brokerage sees scope for expansion, given how gas is expected to play pivotal role in Australia's energy transition
** Australia is one of the world's largest LNG ​exporters and ships more gas overseas than it consumes domestically
** YTD, APA up 14.5%

 (Reporting by Rajasik Mukherjee and Aamir Sheik Khalid in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com, Aamir.SheikKhalid@thomsonreuters.com))