UPDATE: Bank of America Merrill Lynch Raises PO on Western Gas Partners to $40

Bank of America Merrill Lynch is out with its report today on Western Gas Partners WES, raising its PO from $38 to $40. In a note to clients, Bank of America Merrill Lynch writes, "We are modestly raising DCF and cash distribution estimates for WES based on the acquisition announcement, although we note the acquisition has yet to close. We are also raising our PO to $40 (from $38) based on a 4.75% target yield on our annualized 3Q12E distribution of $1.90." Bank of America Merrill Lynch maintains Buy on WES. Shares of WES closed Tuesday at $36.16, up 2.03% from Friday's close.