UPDATE: Citigroup Downgrades Questar to Neutral on Valuation

Citigroup reduced its rating on Questar

from Buy to Neutral but raised its price target from $20.50 to $21.75. Citigroup noted, "We are downgrading shares of Questar to Neutral from Buy. Our target price is $21.75p/s, up from $20.50, as we are now including 1) an assumed $150mm of Wexpro II investments through 2015; 2) incremental development capex at Wexpro; and 3) a lower share count on the heels of the buyback program. While our target price increases, the estimated total return of ~7.3% (based on STR's closing price of $20.91p/s) no longer warrants a Buy rating." Questar closed at $20.91 on Wednesday.