Tuesday, July 13, 2010

JP Morgan (NYSE:JPM) Continues "Overweight" on Anadarko (NYSE:APC)

In line in a very positive sentiment for the BP (NYSE:BP) Gulf spill, JP Morgan (NYSE:JPM) reiterated its "Overweight" on Anadarko (NYSE:APC), while putting their price target at $74.00 for the oil giant.

Morgan analysts said, “APC currently trades at a steep discount from the uncertainty regarding the Macondo spill costs and liabilities. We think APC will pay far less than the stock’s lost market value implies. The stock has significant upside associated with West Africa and Gulf of Mexico exploration programs. Anadarko is catalyst- rich, for the company is drilling up to 18 deepwater exploration and development wells this year.”

Earnings per share on the other hand were downwardly revised by JP Morgan to Anadarko, dropping for 2010 from $11.41 to $11.32, based on what Morgan said was their "commodity price assumptions.”

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