Stifel Nicolaus reiterated its Buy rating on QR Energy QRE but lowered its price target from $23 to $21.
Stifel Nicolaus commented, “Based on 4Q12 production guidance, and our lower estimated realized price, we are lowering our 4Q12 and 2013 distributable cash flow per unit estimates to $0.517 and $2.229, respectively, which implies a 1.1x and 1.14x distribution coverage ratio, assuming a flat distribution. … QRE is currently trading at 7.8x EV/2013 EBITDA, a 3% discount to our peer group. Due to limited visibility on near-term distribution growth, we believe the units will continue to trade at a discount to our peer group. As such, we are lowering our target price 9% to $21 per unit, which assumes the shares maintain a 5% discount based on our implied EV/2013E EBITDA peer group
average."
QR Energy closed at $18.00 on Thursday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in