UPDATE: Morgan Stanley Reiterates Overweight Rating, Removes PT on Anadarko Petroleum Corporation After Tronox Opinion is Finally Published

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In a report published Friday, Morgan Stanley analyst Evan Calio reiterated an Overweight rating on
Anadarko Petroleum CorporationAPC
, but removed the $110.00 price target. In the report, Morgan Stanley noted, “The US Bankruptcy Court has published its long-awaited Tronox opinion. APC was determined to have made a fraudulent transfer (via Kerr-McGee) in connection with the separation of Tronox. A $14.5Bn verdict was decided yet subject to an offset amount to be determined. Total damages, the key element of the case and stock, was thus not determined and will be the subjection of additional briefs (30 and 60 days) and a hearing. The Court framed the offset issue for subsequent hearing. We expect the most quoted and negative line from the opinion relates to the provisional calculation of damages: ‘the [pending] issue is limited but the difference is large – whether the Defendant should be liable for damages in the amount of $14,166,148,000 or $5,150,490,000…' Damage amounts were illustrative (pgs 145-150 in the opinion).” Anadarko Petroleum Corporation closed on Thursday at $83.67.
Posted In: Analyst ColorPrice TargetAnalyst RatingsEvan CalioMorgan Stanley
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