UPDATE: Morgan Keegan Downgrades Enbridge Energy to Perform
Morgan Keegan lowers its rating on Enbridge Energy (NYSE: EEP) to Perform from Outperform on increased capital expenditures and slower distribution growth.
Morgan Keegan says, "Enbridge Energy Partners (EEP) provided guidance Monday in which cap ex was $600mm or 40% above forecast, our derived EBITDA guidance was 7% below forecast, EEP held its distribution vs our 2.3% Q/Q growth forecast, and it reaffirmed its 2%-5% distr growth guidance. With distr growth below the average MLP and thin coverage forecast for 2012, we are holding our target yield range at 6.0%-6.5% giving a valuation range of $34-$37 and a target price of $36."
EEP closed at $33.37 a share on Monday.
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