DCP - DCP Midstream upgraded at RBC after recent sharp slide
DCP Midstream ( NYSE: DCP ) is one of the few energy related stocks to show a gain Tuesday, +0.5% , as RBC Capital upgraded shares to Outperform from Sector Perform with a $40 price target, raised from $37, following the stock's 25% drop since June 7.
RBC analyst Elvira Scotto views the recent selloff as overdone and providing an attractive entry point for investors "as we see limited downside from current levels but significant upside potential."
DCP ( DCP ) also has "improved its balance sheet over the past few years, which provides significant optionality in various commodity price environments," Scotto writes.
RBC also expects a rebound in crude oil prices, given supply constraints.
DCP Midstream ( DCP ) is one of the few remaining midstream firms with publicly-traded preferreds, which allows investors to pick up a high yield coupon, Michael Boyd writes in a bullish analysis posted recently on Seeking Alpha .
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DCP Midstream upgraded at RBC after recent sharp slide