UPDATE: Bank of America Initiates Crosstex Energy (GP) with Neutral, $15 PO; Dividend Potential Priced In

Bank of America initiated its coverage on Crosstex Energy

, the general partner on Crosstex Energy's

limited partnership, with a Neutral rating and a $15 price objective. Bank of America commented, "We are initiating coverage on XTXI with a Neutral rating and $15 PO. XTXI's primary asset is its general partnership (GP) interest in Crosstex Energy, L.P. (XTEX), an MLP that owns and operates natural gas midstream assets. XTXI has robust dividend growth potential given its leverage to growth at XTEX, in our view. We expect moderate cash distribution growth and equity issuance at XTEX over the next several years that should allow XTXI to grow its dividend at an annual rate in the mid-to-high teens. However, we believe XTXI's premium valuation, as represented by its dividend yield (3.4% versus peers at 4.3%), fairly reflects XTEX's growth potential and favorable incentive distribution rights (IDR) structure." Crosstex Energy closed at $14.26 on Friday.