Citi Upgrading Duncan Energy Partners (DEP)

Citi Investment Research is upgrading shares of Duncan Energy Partners L.P. DEP to Buy and is raising its price target to $44 after Enterprise Products Partners L.P. EPD agreed to merge with Duncan. In a note to clients, Citi writes, "We are upgrading DEP To Buy/Medium Risk rating from Hold/High Risk rating and increasing target price to $44.00 from $31.00. Our new target price is derived based on 0.9545x of EPD's TP, risk weighted by 95% as we believe that the likelihood of closing of the transaction is high. Our medium risk rating is based on lower refinancing risk as well as lower likelihood of an equity issuance based on DEP's current liquidity." Shares of DEP gained $7.84 to close at $40.40, a gain of 24.08%.