UPDATE: Ladenburg Thalmann Downgrades Rating to Neutral, Raises PT to $67.50 on Magellan Midstream Partners

A report from Ladenburg Thalmann downgrades its rating to Neutral and raises its price target from $65 to $67.50 on Magellan Midstream Partners MMP. The report states, “Our new 12-month PT of $67.50, up from $65, is based on our threestage, 10-year distribution discount model (DDM) and now reflects higher distribution growth longer-term and a slightly lower cost of capital. However, although we still believe that MMP's fundamentals and growth prospects are intact, as MMP units have enjoyed a strong performance so far in 2011, up 11.5%, while the Alerian MLP Index is up only 1.2% and the S&P 500 is up 0.3%, at the current price level MMP units have breached our threshold of a total potential return of >15% for a BUY rating." MMP closed Friday at $63.02.