Anadarko Petroleum (APC) almost certainly will appeal yesterday's court ruling against it in the Tronox litigation: "We vehemently disagree with the judge's decision... We fully expect to pursue every avenue available to us through the appellate process to protect the interests of our stakeholders, once a final judgment including damages has been rendered."
The severity of the ruling for APC will come down to damages: While the judge found that the trust is entitled to recover $14.17B, APC may be able to lower the figure by $9B for offsetting costs it may have incurred from the Tronox transaction.
J.P. Morgan downgrades APC to Underweight and a $77 price target, while Citi and Global Hunter cut shares to Neutral from Buy; Credit Suisse views $65-$70 as a potential floor level valuation.
Jefferies, maintaining a Buy rating and $111 price target, believes APC could pursue more aggressive dividend/buyback moves to instill shareholder confidence that the ruling will be found excessive.
Get our "Gold and Crude Oil Trade Ideas"
Trade ideas, analysis and low risk set ups for commodities, Bitcoin, gold, silver, coffee, the indexes, options and your retirement. We'll help you keep your emotions out of your trading.
Showing posts with label Jeffries. Show all posts
Showing posts with label Jeffries. Show all posts
Friday, December 13, 2013
Anadarko gets three downgrades after court decision, shares Down 11.5%
Labels:
Anadarko,
APC,
Citi,
Credit Suisse,
Crude Oil,
Drilling,
J.P. Morgan,
Jeffries,
Natural Gas,
ruling,
Tronox
Subscribe to:
Posts (Atom)