UPDATE: BMO Capital Markets Downgrades Plains Exploration & Production to Market Perform Following Deal

BMO Capital Markets reduced its rating on Plains Exploration & Production

from Outperform to Market Perform with a reiterated $45 price target. BMO Capital Markets commented, "We are lowering our rating on Plains Exploration to Market Perform from Outperform following the announced merger agreement with Freeport-McMoRan. … In our view, the current $46 per share consideration for PXP shareholders represents a reasonable price and is in line with our $45 price target and ~$47 after-tax NYMEX NAV. That said, we had only included ~$1 per share for Phobos, and while it's exploration, we feel that this resource potential was left on the table and represents potential upside to the deal for FCX shareholders (and PXP to the extent they receive shares in the combined company)." Plains Exploration & Production closed at $44.50 on Wednesday.