UPDATE: Global Hunter Securities Upgrades Crosstex Energy LP to Accumulate on Q3 Results
Global Hunter Securities raised its rating on Crosstex Energy LP (NASDAQ: XTEX) from Neutral to Accumulate with a reiterated $16 price target.
Global Hunter Securities commented, "We are upgrading our rating to Accumulate (from Neutral)and reiterate our $16 price target on XTEX after Q3 results. The units are down approximately 14% over the past month and now yield over 9.1%. In our opinion, the market has grown highly skeptical of the MLP's ability to resume distribution growth. We believe the next increase will take place in Q3:13, concurrent with the startup of Cajun Sibon, and will accelerate into yearend 2013. This should lead to yield compression and drive attractive total returns, in our view. In addition, the balance sheet is much improved since our downgrade in August."
Crosstex Energy LP closed at $14.49 on Friday.
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Tags: Global Hunter Securities