Thursday, July 22, 2010

UBS (NYSE:UBS) Raises Apache (NYSE:APA) Price Target

After the announcement that Apache Corp. (NYSE:APA) will be acquiring $7 billion in assets from BP (NYSE:BP), UBS (NYSE:UBS) raised its price target on the company to $125 a share.

Concerns over their debt rating and dilution of shares to raise capital for the deal have the stock down, even though the long-term prospects of the company are probably better with the acquisitions.

Apache closed Wednesday's session at $87.45, down $0.83, or 0.94 percent.

The deal is part of BP's strategy to raise money to pay for its liabilities and claims from the Gulf oil spill.

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