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Anadarko Now Rated an “Outperform” at Wells Fargo (APC)

Integrated oil giant Anadarko Petroleum Corporation ( APC ) on Tuesday saw its rating, price target, and earnings estimates all boosted by analysts at Wells Fargo.

The firm said it upgraded APC from "Market Perform" to "Outperform" and raised its valuation range from $82-86 to $97-103. That new range suggests up to a 31% upside to the stock's Friday closing price of $78.66.

A Wells Fargo analyst commented, "Our new valuation range is $97-$103/share (was $82-$86), which is reflective of our $101/share NAV. In conjunction with the upgrade, we are increasing our 2011E and 2012E EPS, to $3.24 from $3.14, and to $4.02 from $3.90, respectively."

Continuing, "Exploration provides Anadarko shareholders upside potential, and significant cash generation provides flexibility in funding the company's budget allowing continued growth in the future. In spite of uncertainty regarding Macondo and GOM regulatations, we believe there is significant value in the company which we believe should drive shares to Outperform peers."

Anadarko shares rose $1, or +1.3%, in premarket trading Tuesday.

The Bottom Line

Shares of Anadarko Petroleum ( APC ) have a .46% dividend yield, based on Friday's closing stock price of $78.66. The stock has technical support in the $70-$72 price area. If the shares can firm up, we see overhead resistance around the $80-$85 price levels.

Anadarko Petroleum Corporation ( APC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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