UPDATE: Bank of America Merrill Lynch Resumes Coverage on Linn Energy LLC with Neutral Rating, $41 PO
In a report published Wednesday, Bank of America Merrill Lynch resumed coverage on Linn Energy LLC (NASDAQ: LINE) with a Neutral rating and $41.00 price objective.
BofA Merrill Lynch noted, “Following the launch of an institutional friendly subsidiary, LinnCo (LNCO) we are resuming coverage of LINE with a Neutral rating. With a period of material growth in production driven by another strong acquisition run in 2012, management continues to demonstrate the advantages of an acquisition model that pays more attention to unit cash flow accretion than asset NPV alone. With the launch of LNCO, it has also secured access to another source of equity financing that management believes could potentially be a game changer for the pace of growth. However, for now this has not been accompanied by any additional growth visibility, and thus cash received has essentially only brought its b/sheet into line, diluting unit holders in the process.”
Linn Energy LLC closed on Tuesday at $38.87.
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