Pampa Energia downgraded to Neutral from Buy at Citi

Citi downgraded Pampa Energia (PAM) to Neutral from Buy with a price target of $75, up from $58. The firm’s relative preference is now for YPF, as it considers the company best positioned to benefit from the outcome of potential divestiture of Exxon assets to Pluspetrol. YPF could still benefit from a re-rating on the largest landbank in Vaca Muerta while engaging a new player into the midstream expansion, the analyst tells investors in a research note. Citi believes the recent Pampa Energia rally implicitly values Rincon de Aranda above the Exxon deal, which may be the best potential peer transaction for a green field project.