UPDATE: Citigroup Raises PT to $21.50 on BreitBurn Energy Partners on Commodity Pricing

Citigroup reiterated its Buy rating on BreitBurn Energy Partners (NASDAQ: BBEP) and increased its price target from $20.50 to $21.50.

Citigroup said, "The change to our target price primarily reflects an upward adjustment to our target multiple and fine tuning our assumptions for commodity prices. Our target price assumes applying a 8.75x (i.e. 8.5x previously) trailing EV/EBITDA multiple to our adjusted EBITDA forecast of $297.4 million over the next twelve months (i.e. on a four quarter rolling basis 1Q13-4Q13). The increase in target multiple reflects our view that the partnership has significantly improved its coverage ratio over the past two quarters and has announced nine consecutive distribution increases since the reinstatement of distribution in 2Q10. In addition, BBEP has significant availability in its credit facility to take advantage of suitable acquisition opportunities."

BreitBurn Energy Partners closed at $19.72 on Friday.

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