Saturday, May 22, 2010

Anadarko (NYSE:APC): JPMorgan (NYSE:JPM) Keeps Overweight on Them

Anadarko (NYSE:APC) has retained its overweight from JPMorgan (NYSE:JPM), as they recommend them as a buy, believing they're going to outperform their competitors, not only in the short term but the long term as well.

Analyst Joseph Allman said he and his team see the value of Anadarko as standing at $46.03 a share after operational costs, and an NAV of $81.93 a share. It last traded at $53.83 a share, but was down in electronic trading by over 3 percent on Saturday.

At this time the stock is weighed down by the costs of the Macondo oil spill, but its exploration projects in the Gulf of Mexico and West Africa positions it for a strong upside going forward.

In West Africa alone it is now drilling about 30 deep-water, offshore wells, and also has some land positions in the United States.

JPMorgan retained their price target of $82 on the company, expected to be reached in December 2010, which will be quite a move upward in the current climate.

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