Morgan Keegan Upgrades Boardwalk to Outperform; $30 PT

Morgan Keegan upgraded master limited partnership (MLP) Boardwalk Pipeline Partners (NYSE: BWP) to outperform due to valuation and raised its price target on the units to $30 from $29.50. The research firm has a 12-month valuation range of $29-$31 on Boardwalk Pipeline.

“We are modeling modest 2.7% compounded distribution growth through 2013 for BWP. BWP has recently expanded into the natural gas gathering business through a 15-year agreement with Southwestern Energy (NYSE: SWN) in the Marcellus Shale. We believe this agreement could be the first of many as BWP looks for new avenues of growth,” Morgan Keegan said in its research note.