S&P Capital IQ Reiterates its BUY Rating on Anadarko Petroleum, Target Price Reduced

October 18 00:00 2011

NEW YORK, October 18 (FinanaceEnquiry.com) – Analyst Michael Kay of S&P Capital IQ reiterates his BUY rating on the shares of Anadarko Petroleum (NYSE: APC). The target price is reduced from $95 to $90.

Analyst Michael Kay, in a research note published yesterday mentions that the company’s shares on the settlement with BP related to Gulf of Mexico Macondo incident claims.  According to the settlement, APC will pay $4 billion to BP and will not pursue gross negligence and forfeit interest in the well. In addition, APC will receive 12.5% of future insurance payments and expects focus to shift to its diverse growth portfolios. Considering a lower price outlook, the analyst has reduced the EPS estimates of 2011 and 2012 from $3.50 to $3.14 and from $4.30 to $3.27, respectively.