Morgan Stanley analyst Robert Kad downgraded Western Midstream (WES) to Underweight from Equal Weight with a price target of $40, down from $42. The stock’s valuation “screens full” following a strong performance in 2024, with incremental return of capital more limited after a large distribution step up in Q1, the analyst tells investors in a research note. The firm says uncertainty over potential further secondary sales by sponsor Occidental Petroleum (OXY) “could create an overhang.”
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