UPDATE: J.P. Morgan Downgrades El Paso Pipeline to Neutral
According to J.P. Morgan, El Paso Pipeline Partners (NYSE: EPB) is downgraded to Neutral.
J.P. Morgan said that after El Paso Corp (EP), owner of EPB's GP, agreed to be acquired by Kinder Morgan Inc. (KMI), the outlook for EPB substantially changed. “This higher discount rate (partially offset by revised equity issuance assumptions) reduces our DCF/LP unit derived price target to $38 from $39. Our new YE12 price target implies ~6% total return potential and a 5.7% yield on our 4Q12 target run rate of $2.17/unit.”
El Paso Pipeline Partners closed yesterday at $37.47.
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