UPDATE: Goldman Sachs Downgrades Plains Exploration & Production to Neutral, Maintains $46 PT
Goldman Sachs lowers its rating on Plains Exploration & Production (NYSE: PXP) to Neutral from Buy as it maintains its price target of $46 a share, reflecting the stock's outperformance.
Goldman Sachs says, "Plains E&P shares have outperformed since we added them to the Americas Buy List on December 1, 2010 (+31% vs. -6% for EPX index, +9% for the S&P 500), and in the last three months (+35% vs. +0% for the EPX index, +8% for the S&P 500). We believe Plains shares have received recognition for expected growth due to the company's large drilling inventory and also for its oily focus. Oilier E&Ps have generally outperformed the gassier E&Ps due to tightness in oil as non-OPEC supply growth remains challenged and a negative outlook for natural gas prices due to recent mild weather and lower natural gas inventory stock draws."
PXP closed at $38.21 a share on Monday.
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