UPDATE: Credit Suisse Upgrades DCP Midstream LP (DCP) to Outperform

Credit Suisse analyst Spiro Dounis upgraded DCP Midstream LP (NYSE: DCP) from Neutral to Outperform with a price target of $24.00 (from $34.00).

The analyst comments "On valuation, DCP is down ~12% since hitting a 52-week high in late October. Accordingly, we see a buying opportunity with ~20% potential upside to our updated target price. At current price levels, DCP implies 7.3x ‘22 EBITDA, over 1.0x below G&P peers and over 2.0x below large diversified peers. We believe expectations were too elevated heading into earnings, likely driving the sell-off and some profit taking. That said, we don’t believe the outlook has changed; in fact it may be even stronger. Accordingly, we see the risk-reward benefit now skewing to the upside following the sell-off."

For an analyst ratings summary and ratings history on DCP Midstream LP click here. For more ratings news on DCP Midstream LP click here.

Shares of DCP Midstream LP closed at $30.47 yesterday.

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