UPDATE: JP Morgan Downgrades Enbridge Energy Partners to Neutral on Risk/Reward
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
|Jul 2016||Goldman Sachs||Downgrades||Neutral||Sell|
|May 2016||Credit Suisse||Maintains||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.