Morgan Stanley Provides Color on DCP Midstream Partners

Morgan Stanley provided color on DCP Midstream Partners DPM after a meeting with the company's management. In a research report published today, Morgan Stanley states, "Overall, we liked what we heard, and believe that potential dropdowns, a strategic shift to lower margin volatility and current project additions in 2011 now support a multi-year ~5 - 7% distribution growth. We see DPM units trading attractively at a ~6.5% yield, and we still expect DPM to trade in line with the broader MLP market. We continue to see a positive risk-reward skew at DPM, with a total 1-yr return potential of ~20%." At the moment, Morgan Stanley has an Overweight rating and a price target of $45 placed on the company's stock. On Wednesday, DCP Midstream Partners lost 0.46% of its value to close the day at $38.65.