UPDATE: Credit Suisse Upgrades Spectra Energy Partners LP to Outperform, Raises PT

In a report published Wednesday, Credit Suisse upgraded its rating on Spectra Energy Partners LP

from Underperform to Outperform, and raised its price target from $31.00 to $34.00. Credit Suisse noted, “We are raising our rating on SEP from Underperform to Outperform following its $545mm purchase of 38.76% of Maritimes & Northeast Pipeline, LLC (M&N US) from SEP's parent, Spectra Energy, Inc. (SE). We believe the roughly $0.20/unit accretion from the acquisition should allow SEP to increase its distribution growth rate from the current ~3% to roughly 6% through 2014. Given the highly predictable nature of SEP's cash flows we believe investors will likely bid down the yield to rough parity with the AMZX if not a slight premium.” Spectra Energy Partners LP closed on Tuesday at $30.75.