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UPDATE: JP Morgan Downgrades Enbridge Energy Partners to Neutral on Risk/Reward

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JP Morgan lowered its rating on Enbridge Energy Partners (NYSE: EEP) from Overweight to Neutral and reduced its price target from $34 to $32.

JP Morgan noted, "After factoring in our reduced NGL price expectations and revised management guidance for 2012, we are lowering our earnings estimates for EEP. Moreover, despite attractive long term growth projects that capitalize on evolving crude oil logistics needs, we believe the precipitous decline in NGL prices has eliminated the potential for near term distribution growth; we now forecast 2012 distribution coverage of ~0.9x. We do not expect the market to provide meaningful yield compression (price appreciation) until EEP demonstrates the ability to match peer distribution growth. Additionally, we see continued near-term headline risk associated with the Line 6B crude oil releases, especially in light of recent NTSB comments."

Enbridge Energy Partners closed at $29.40 on Tuesday.

Latest Ratings for EEP

DateFirmActionFromTo
Jul 2016Goldman SachsDowngradesNeutralSell
May 2016Credit SuisseMaintainsNeutral
Apr 2016BarclaysAssumesEqual-weight

View More Analyst Ratings for EEP
View the Latest Analyst Ratings

Posted-In: JP MorganAnalyst Color Downgrades Intraday Update Analyst Ratings

 

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