UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Oneok Partners LP
In a report published Wednesday, J.P. Morgan & Co. reiterated its Neutral rating on Oneok Partners LP (NYSE: OKS), and raised its price target from $57.00 to $61.00.
J.P. Morgan noted, “We rate OKS Neutral and establish a YE2013 price target of $61unit. Given ONEOK's track record of creating a premier integrated NGL system through both acquisitions and expansion projects, we view management as one of the most capable in the midstream space. In addition to capturing fee-based revenue across the NGL value chain, the partnership's extensive asset base provides market knowledge and the ability to capture additional upside opportunities. As the largest independent natgas midstream service provider in the Bakken, we believe ONEOK will be a major beneficiary of the very strong growth expected from this play, as evidenced by the recent Bakken Crude Express Pipeline announcement. Nevertheless, we believe current price levels are baking in the booming Bakken benefits and see limited ability for OKS to achieve incremental yield compression in the near term. Moreover, we favor OKS' parent, OKE, due to the relative tightness in yield spreads between the two and OKE's ability to drive c-corp peer leading dividend growth.”
Oneok Partners LP closed on Tuesday at $58.02.
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