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UPDATE: BMO Capital Markets Initiates Plains Exploration & Production at Outperform on Deepwater Acquisition

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BMO Capital Markets initiated coverage on Plains Exploration & Production (NYSE: PXP) with an Outperform rating and a $45 price target.

BMO Capital Markets noted, "Plains's +$6 billion deepwater Gulf of Mexico acquisition transforms the story to one with an increased focus on deepwater redevelopment and exploration, rather than one in which a legacy, free cash flowing California asset funds oil production growth in an Eagle Ford sweet spot. Demonstrating to the Street the value of its newly acquired deepwater assets will take time, but we think investors' initial skepticism of the deal creates an attractive entry point for the shares."

Plains Exploration & Production closed at $36.97 on Thursday.

Latest Ratings for PXP

Apr 2013RBC CapitalDowngradesOutperformSector Perform
Jan 2013SusquehannaDowngradesPositiveNeutral
Jan 2013Scotia Howard WeilDowngradesSector Perform

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Posted-In: BMO Capital MarketsAnalyst Color Initiation Intraday Update Analyst Ratings


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