UPDATE: Citigroup Downgrades Buckeye Partners to Sell

Citigroup says it lowers its rating on Buckeye Partners BPL to Sell from Buy and cuts its price target to $58, down $66, on high risks coming from high leverage and low coverage. Citigroup says, "After another quarter of disappointing operating results we are downgrading BPL to Sell and reducing our TP to $58/unit. Our revised rating is based on our view that the partnership's relatively high leverage, low distribution coverage, and recent operating performance reflects a higher degree of risk to investors than what is currently being priced into BPL's valuation. Our reduced TP is based on a higher target yield of 7.5% (6.5% previously) that we believe more appropriately values the partnership and potential execution risk." BPL closed at $63.75 a share on Friday.