Apache upgraded to Buy at Citigroup, shares -3.5% anyway

• Apache (APA -3.5%) is upgraded to Buy from Neutral with a $62 price target at Citigroup, but the endorsement is not helping on a day when energy stocks are lower across the board.
• The firm attributes the sharp discount to APA relative to peers to its international holdings, but believe the recent underperformance has pushed to the stock to an attractive level while modeling stronger capital efficiency in 2016 vs. consensus opinion.