Morgan Stanley Increases PT on Apache to $150, Maintains Overweight (APA)

Morgan Stanley increased its price target on Apache (NYSE: APA) from $145 to $150. At the same time, Morgan Stanley reiterated its Overweight rating.

In a research report published today, Morgan Stanley states, "Deep dive on assets and outlook gives us greater conviction in core Overweight. We came away from our analysis with 1) a higher conviction that 2012+ sets up well for APA 2) a deeper conviction that APA (unlike many E&Ps) generates strong returns and creates value through the cycle and 3) a better appreciation for APA's unique positioning within the global upstream. We are increasing our price target to $150/shr from $145/shr (~5.4x our 2012e EV/DACF at strip) to better reflect NAV and the earnings power and duration of a bigger and a better positioned APA."

On Friday, Apache added 0.67% to its value to close the week at $124.25.