UPDATE: Global Hunter Securities Downgrades Plains Exploration & Production to Neutral Following Deal
Global Hunter Securities reduced its rating on Plains Exploration & Production (NYSE: PXP) from Accumulate to Neutral and reduced its price target $58 to $50
Global Hunter Securities noted, "In one of the more interesting series of developments in US oil and gas in some time, global mining company Freeport-McMoRan announced its intentions to buy not only Plains Exploration, but also McMoRan Exploration. Including assumption of the pro forma debt Plains incurred in order to close its recent acquisition of deepwater Gulf of Mexico assets from British Petroleum, Exxon and Shell, these deals are valued at about $20B. … We are downgrading shares of PXP to a Neutral rating from Accumulate and lowering our price target to $50 from $58 to reflect the deal valuation."
Plains Exploration & Production closed at $44.50 on Wednesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: Global Hunter Securities