Barclays Maintains an 'Overweight' on DCP Midstream Partners (DPM); Highlights from non-deal Road Show
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Price: $37.60 +1.08%
Rating Summary:
3 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on DCP Midstream Partners (NYSE: DPM) price target of $47.00.
Barclays analyst says, "Parent's activity leads to visible growth prospects for DPM: The primary takeaway from our road show with DPM management was that the visibility of growth has improved in the last 12 months' time and the company will revise growth outlook in the Q4 earnings call in February 2012. We expect DPM to raise its distribution growth target from its currently stated 5-7%. Clearly, opportunity sets have improved for DPM since establishing the current outlook earlier this year, as parent (DCP Midstream LLC) has materially stepped up its investments around liquids rich shale plays."
"Increased visibility on parent-sponsored growth opportunities: Improved visibility on parent-sponsored growth is a highly logical outcome given the parent's large project announcements and its limited direct access to equity capital (DCP Midstream LLC is a privately held company)....Greater fee-based mix and asset diversity positive for DPM: As significant portion of the parent developed projects have ideal MLP asset characteristics (fee-based contracts with long dated terms) we expect DPM's fee-based cash flow mix to increase as DPM helps fund these projects."
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 $40.02 yesterday.
Barclays analyst says, "Parent's activity leads to visible growth prospects for DPM: The primary takeaway from our road show with DPM management was that the visibility of growth has improved in the last 12 months' time and the company will revise growth outlook in the Q4 earnings call in February 2012. We expect DPM to raise its distribution growth target from its currently stated 5-7%. Clearly, opportunity sets have improved for DPM since establishing the current outlook earlier this year, as parent (DCP Midstream LLC) has materially stepped up its investments around liquids rich shale plays."
"Increased visibility on parent-sponsored growth opportunities: Improved visibility on parent-sponsored growth is a highly logical outcome given the parent's large project announcements and its limited direct access to equity capital (DCP Midstream LLC is a privately held company)....Greater fee-based mix and asset diversity positive for DPM: As significant portion of the parent developed projects have ideal MLP asset characteristics (fee-based contracts with long dated terms) we expect DPM's fee-based cash flow mix to increase as DPM helps fund these projects."
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 $40.02 yesterday.
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