Bank of America initiated its coverage on Crosstex Energy XTXI, the general partner on Crosstex Energy's XTEX 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.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in