UPDATE: Citigroup Reiterates Buy Rating, Lowers PT on DCP Midstream Partners LP

In a report published Monday, Citigroup reiterated its Buy rating on DCP Midstream Partners LP

, but lowered its price target from $51.50 to $49.50. Citigroup noted, “We are maintaining our Buy rating while lowering our TP to $49.50/unit based on our view that the partnership will increase the distribution by 8.8% over the next 12 months to $2.96/unit annualized and that units will trade at a 6.0% yield. We feel this yield is substantiated by continued NGL price weakness that is likely to remain in place through the first half of 2013 that could impact DPM's near-term margins. Additionally, we believe the market is likely to discount the partnership's units until long-term financing is in place for recent acquisitions and project announcements that could include an equity offering over the next 3 to 6 months.” DCP Midstream Partners LP closed on Friday at $38.90.