What Do Analysts Recommend for Anadarko after Its 2Q16 Earnings?

After Anadarko Petroleum’s (APC) 2Q16 earnings release, Wall Street analysts updated their target prices for the next 12 months.

Approximately 73% of analysts rate Anadarko a “buy,” whereas 22% rate it a “hold,” and 5% rate it a “sell.” The average broker target price of $66.50 for Anadarko implies a return of around ~24% in the next 12 months. Upstream peers Concho Resources (CXO) and Cimarex Energy (XEC) have average broker target prices of $134.54 and $130.65, respectively. These figures imply returns of 12.5%, and ~150%, respectively, in the next 12 months.

By comparison, upstream peers Concho Resources (CXO) and Cimarex Energy (XEC) have average broker target prices of $134.54 and $130.65, respectively. These figures imply returns of 12.5%, and ~150%, respectively, in the next 12 months.

The high, low, and median analyst target prices for Anadarko are $108, $42, and $65, respectively. Remember, Anadarko Petroleum is a component of the SPDR S&P North American Natural Resources ETF (NANR), which invests ~1.4% of its portfolio in APC.

Scotia Howard Weil and Morgan Stanley (MS) gave Anadarko Petroleum one of the most optimistic target prices of $79 and $74, respectively, implying returns of around 47% and 37.5% in the next 12 months.

Goldman Sachs (GS) and Capital One Securities also gave optimistic target prices of $68 each, implying returns of around ~26% in the next 12 months.

Raymond James and Société Générale gave lower price targets of $66 and $65, respectively, implying returns of ~22% and ~21% in the next 12 months.

One of the lowest targets was given by Iberia Capital Partners, which gave Anadarko target price of $62. But this still implies a return of 15% over the next year.

For a detailed overview of the company, check out Market Realist’s Anadarko Petroleum: What’s Driving the Uptrend?