Wall Street Analysts’ Calls on DCP Midstream Partners Stock



What is Wall Street saying?

In this series, we’ve looked closely at various operational and financial aspects of DCP Midstream Partners (DPM), a midstream energy master limited partnership. We’ve seen that DCP Midstream maintains steady financial footing and strong growth opportunities. Now, let’s see the Wall Street analysts’ calls on the stock.

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Most rate DCP Midstream a buy

Approximately 56% of analysts tracking DCP Midstream (DPM) rate it a buy or some equivalent. Approximately 31% rate the company a hold or an equivalent, while 13% of the analysts rate it a sell.

Most of the analysts tracking the stock recommend hold or buy, even in the midst of one of the most severe crude oil price slumps in history. This speaks well for the company’s performance. To find out more, you can read Market Realist’s Have US oil and gas companies leveraged themselves out?

Analysts’ recommendations

When it comes to individual recommendations, U.S. Capital Advisors, an independent research firm, gives DCP Midstream a target price of $54. The research firm recommends overweight or buy equivalent. DCP Midstream (DPM) currently trades near $38, implying 43% return for the next 12 months.

Ladenburg Thalmann & Co., part of Ladenburg Thalmann Financial Services (LTS), an investment bank, gives DCP Midstream (DPM) the highest target price of $63. This implies a whopping 66% return.

RBC Capital Markets, a Canadian investment bank and part of the Royal Bank of Canada, gives DCP Midstream (DPM) the 12-month target price of $43. This target implies a ~14% return for DCP Midstream over the next 12 months.

Among the investment banks, Barclays (BCS) gives DCP Midstream (DPM) a target of $42, the lowest target price for DPM. This implies an 11% return in the next 12 months. Credit Suisse, the investment arm of Credit Suisse Bank (CS), recommends a neutral target of $50. This implies a 32% return at the current price over the next one year.

Jefferies gives DCP Midstream (DPM) a target price of $48. This implies a 27% return over the next 12 months.

Evidently, Wall Street has decent expectations for DCP Midstream (DPM). DPM makes up 2.45% of the Alerian MLP ETF (AMLP).

For more information on energy companies, check out Market Realist’s Energy and Power page.


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