UPDATE: Jefferies Raises PT on Southern Union to $39

Jefferies is out with its report today on Southern Union SUG, raising its PT from $33 to $39. In a note to clients, Jefferies writes, "We value the stock at $39 consistent with Williams all-cash offer for Southern Union. Jefferies believes the $39 offer values the company at a 9.5x EV/EBITDA multiple. Every 0.5x change in the multiple equates to a $4.00 change in the valuation." Jefferies maintains Hold on SUG. At the time of posting, shares of SUG were trading pre-market at $39.38, up 15.31% from Thursday's close.