UPDATE: JP Morgan Downgrades TC Pipelines to Underweight on Deteriorating Risk/Reward

JP Morgan reduced its rating on TC Pipelines

from Neutral to Underweight and lowered its price target from $45 to $43. JP Morgan commented, "After factoring in lower estimates for Northern Border Pipeline (shipper settlement on NBP) and increasing our discount rate to account for escalating uncertainty surrounding Great Lakes future results, we are downgrading TCP to Underweight. … We see downside risk to TCP's ability to maintain near-term growth, outside of drop-downs, given the partnership's limited organic growth portfolio. We believe the market may demand a higher yield given the downside risk to growth, resulting in yield expansion and price depreciation." TC Pipelines closed at $44.80 on Friday.