UPDATE: Credit Suisse Upgrades Boardwalk Pipeline Partners to Outperform on Attractive Yields
Credit Suisse raised its rating on Boardwalk Pipeline Partners (NYSE: BWP) from Neutral to Outperform and reiterated its previous $29 price target.
Credit Suisse commented, "The recent slump in MLPs in general and BWP in particular has driven down BWP's unit price to a level that we believe makes BWP attractive for purchase. BWP faces nearly zero direct commodity price risk in its operations with nearly 95% of its LTM revenues derived by capacity reservation and utilization charges. As of Monday's close, BWP's yield has reached 8.50%, and it currently trades at an over 200 bp discount to the AMZX and a gaping 689 bp discount to the US 10 Yr Treasury - the largest discount to the 10 yr since early 2009 at the height of the financial crisis."
Boardwalk Pipeline Partners closed at $25.06 on Monday.
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