UPDATE: JP Morgan Initiates QR Energy at Overweight with $21 PT
JP Morgan initiated its coverage on QR Energy (NYSE: QRE) with an Overweight rating and a price target of $21 a share on yield and drop-down potential.
JP Morgan commented, "QRE's upstream assets are located in the Permian, ArkLa-Tex, Mid-Continent, Gulf Coast and Michigan. Currently, QRE's production is nearly evenly split between liquids and gas (reserves are roughly 60%/40% split liquids/gas). The partnership's main avenues to growth include drop-downs from the Quantum family and third party acquisitions. With one of the highest yields among peer upstream MLPs, we believe current levels represent an attractive entry point."
QR Energy closed at $17.75 on Wednesday.
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