UPDATE: Global Hunter Downgrades DCP Midstream Partners to Neutral, Lowers PT
In a report published earlier today, Global Hunter Securities, LLC downgraded its rating on DCP Midstream Partners, LP (NYSE: DPM) from Accumulate to Neutral, and lowered its price target from $48.00 to $40.00.
Global Hunter went on to say “We are downgrading a handful of natural gas gathering & processing MLPs and revising estimates based on our belief that the NGL market environment will favor lower ethane and propane prices going forward. We believe a weakening US economy, high propane inventories (and prices) and continued weakness in natural gas prices all indicate a higher risk that NGL prices stay lower for longer. This results in caution toward the gathering & processing subsegment. We recommend positioning defensively going into the Q2:12 reporting season, favoring fee-based, diversified MLPs with low exposure to unhedged NGLs.”
DCP Midstream Partners, LP closed on Friday at $42.15.
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Tags: Global Hunter Securities