UPDATE: Bank of America Upgrades Energy Transfer Partners to Buy, Slightly Raises PO
In a report published Monday, Bank of America upgraded Energy Transfer Partners LP (NYSE: ETP) from Neutral to Buy, and raised price objective from $47 to $48.
Bank of America noted, "ETP has been a massive laggard on a total return basis versus the Alerian MLP Index (AMZX) both YTD and over the last three years - by ~700bps and 6,100bps, respectively. A stagnant distribution for 17 consecutive quarters, highly acquisitive nature with a taste for large deals and persistent headwinds at ETP's intrastate natural gas operations are among the most prominent reasons for underperformance, in our view. However, with last month's close of its acquisition of Sunoco (SUN), we think ETP deserves better - and fundamentals and unit price performance can improve on an absolute and relative basis."
Energy Transfer Partners closed at $42.08 on Friday.
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