Credit Suisse Upgrades Anadarko Petroleum (APC) to Outperform
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Credit Suisse upgraded Anadarko Petroleum (NYSE: APC) from Neutral to Outperform with a price target of $77.00 (from $70.00).
Analyst E. Westlake commented, "At 1Q, we reduced exposure in the large cap E&P sector via HES and APC. Today, we're adding APC back into the large cap E&P portfolio. We raise our TP to $77/sh (from $70/sh) on Delaware Estimated Ultimate Recovery's (EUR's), some option value for Proven Undeveloped Reserves (PUDs) in gassy disposals, some value for Cote D'Ivoire and two extra tiebacks in the Gulf of Mexico per year. We raise our rating to Outperform from Neutral (to join PXD, CXO, DVN). We're still concerned about the oil price trajectory if OPEC don't rein in output. However, we suspect APC will continue to monetise assets to reduce the absolute level of net debt. At the same time, the message of focus on three core areas - the Delaware, Wattenberg and Deepwater Gulf of Mexico (where APC has significant infrastructure advantages) will resonate with investors. Yes, the shares could pull back into the $50's as oil falls but there seem to be higher highs ahead. Our "pause" call on APC was wrong due to operational and management execution. There is more that management can continue to do to drive the shares."
Shares of Anadarko Petroleum closed at $59.95 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JPMorgan Raises Rating on CBOE Holdings (CBOE) to 'Overweight'; Analyst Thinks Bats Technology Will Drive Greater Trading Activity
- Jefferies Cuts Price Target on Kroger (KR) to $30 Following 3Q and Guidance
- Jefferies Raises Price Target on Zumiez, Inc. (ZUMZ) to $23 Following 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Upgrades
Related EntitiesCredit Suisse, OPEC
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!