Barclays Mintains an 'Overweight' on DCP Midstream Partners (DPM); Raising Long-Term Growth Forecast

Barclays maintains an 'Overweight' on DCP Midstream Partners (NYSE: DPM) price target raised $2 to $49.

Barclays analyst says, "We are raising our 4-year distribution growth forecast to 7.5% CAGR: Management will provide a 3-year growth outlook in the Q4 earnings call and we believe the company will boost its outlook compared to 2011 planned growth of 5%, driven by parent led co-investment opportunities. Considering sizable MLP friendly projects developed at parent will come into service in 2013 (Sand Hills/Southern Hills), we expect DPM's co-investment capital to increase from 2012 to 2013/2014. We forecast 6-7% per year distribution growth in 2012/2013 followed by an 8% growth rate in 2014/2015. Our estimates are based on $700 mm of growth capex/yr, which has upside if parent's 3-year spending budget increases to $6 billion from current $4 billion."
For an analyst ratings summary and ratings history on DCP Midstream Partners click here. For more ratings news on DCP Midstream Partners click here.

Shares of DCP Midstream Partners closed at $43.32 yesterday.

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