Mizuho analyst Gabriel Moreen downgraded DCP Midstream (DCP) to Neutral from Buy with a price target of $42, down from $45, after Phillips 66 (PSX) announced an agreement to purchase all of DCP’s publicly held common units for $41.75 per unit. The analyst says that while he would argue DCP’s intrinsic value could still be higher, investor sentiment seems satisfied with this 20% premium given Phillips 66’s majority ownership position and the recent commodity price retracement.
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Published first on TheFly
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