UPDATE: J.P. Morgan Downgrades El Paso Pipeline to Neutral

According to J.P. Morgan, El Paso Pipeline Partners

is downgraded to Neutral. J.P. Morgan said that after El Paso Corp (

), owner of EPB's GP, agreed to be acquired by Kinder Morgan Inc. (

), 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.