Barclays Reiterates an 'Overweight' on DCP Midstream Partners (DPM); Solid Q1 Results

Barclays reiterates an 'Overweight' on DCP Midstream Partners (NYSE: DPM), PT increased by $1 to $47.

Barclays analyst says, "We believe investment in DPM provides opportunities
to realize above 12% total return longer term, given solid growth and relatively
limited risk profile. DPM has diversified asset base that include G&P (75% of total), wholesale propane, and NGL pipeline, large mix of fee-based business (60%) and substantial hedge positions (29% of 2011 margin hedged), investment grade credit and strong sponsorship. DPM is on track to deliver its target of 5% distribution growth this year. Longer term, we believe 6%+ growth is attainable and within�control of the larger DCP enterprise that include DCP Midstream LLC, which is one of the largest G&P operators in the U.S. DPM will have opportunities to co-invest in a number of growth basins with its sponsor who is pursuing projects in Eagle Ford, DJ Basin, Permian." (Barclays slashes FY11 EPS estimate from $1.41 to $0.67)

For more ratings news on DCP Midstream Partners click here and for the rating history of DCP Midstream Partners click here.

Shares of DCP Midstream Partners closed at $42.20 yesterday.

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