Jefferies Initiates Coverage On Southern Union Co.

Jefferies & Co. is initiating coverage on shares of Southern Union Co. SUG with a Buy rating and a $33.50 price target. In a note to investors, Jefferies writes, "In our opinion, Southern Union is under-valued and levered to changes in oil and natural gas prices. We believe that Southern Union's transmission business ("pipe") segment is trading at a 15% discount to our group average multiple for MLP stocks adjusted for taxes. If the company were able to execute on its plan to build an LNG export facility our valuation would increase by $2.00 per share." Shares of SUG lost 13 cents yesterday to close at $29.44, a loss of 0.44%.