UPDATE: Bank of America Reiterates Buy Rating, Lowers PT on Anadarko Petroleum Corporation Following News of Tronox Ruling

In a report published Friday, Bank of America analyst Doug Leggate reiterated a Buy rating on

, but lowered the price target from $120.00 to $105.00. In the report, Bank of America noted, “The long awaited outcome of the NY bankruptcy court over Tronox is a preliminary ruling that is a significant piece of negative news for Anadarko. Notably, the potential liability as described by the court document suggests a value of $5.2bn or $14.2bn, or $7 or $18 per share after tax. We understand Anadarko will appeal – but the process will take time. The initial market reaction has seen APC trade ~$10 / share lower: but using that as a starting point we believe the worst case is priced in. While the headline numbers are significant, in our view, this is not Macondo: with the range of outcomes now known, save for any successful appeal a line can now been drawn under the issue – and perhaps allow the market to refocus on a fundamental investment case we continue to view as compelling In this respect the event is passed – but upside to a revised PO of $105 that assumed the worst case warrants another look. Buy.” Anadarko Petroleum Corporation closed on Thursday at $83.67.