Loading...
Loading...
In a report published Monday, Citigroup upgraded its rating on Spectra Energy Partners LP
SEP from Neutral to Buy, and reiterated its $33.00 price target.
Citigroup noted, “We are upgrading SEP to Buy and maintaining our target price of $33.00. Our TP assumes SEP can increase the annual distribution to $1.98/unit 12 months from now and that units trade at a 6% yield. Units have traded down ~11% over the past month on Fiscal Cliff and taxation worries, resulting in units currently trading at a ~7.1% yield and presenting an attractive buying opportunity for an MLP with a significant amount of cash flows supported stable long-term contracts, a strong general partner (GP), assets located in demand-growth growth regions, and evidence that accretive drop-down acquisitions are back on the table following last month's M&N US Pipeline acquisition.”
Spectra Energy Partners LP closed on Friday at $27.65.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in