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DPM [BUY +21.2%] - Good dividend yield play with solid long-term catalysts - Update

We increase our target price by 4%, mainly driven by a lower risk-free rate and risk premium in our DCF model and upgrade to a BUY rating. Although near-term profitability depends on gas and urea price movements, the new NH3-NPK plant will be a long-term growth catalyst. The current valuation is in line with a historical ~40% discount to peers, but the 10.6% dividend yield is very attractive.