UPDATE: Credit Suisse Reinstates Coverage on Linn Energy with Neutral Rating, $40 PT
In a report published Wednesday, Credit Suisse Group reinstated coverage on Linn Energy LLC (NASDAQ: LINE) with a Neutral rating and $40.00 price target.
Credit Suisse noted, “We believe LINE is best positioned to capitalize on a robust acquisition market given its track-record, strong hedges and unmatched access to capital. However, LINE's ability to deliver consistent 5% annual distribution growth may be constrained by weak NGL prices and the need to reduce leverage, in our view. Our $40 target price provides for a 11% total return over the next 12 months...Since its IPO, LINE has built an impressive track-record of growth through acquisition. In fact, over the past 3 years, LINE has captured 50% (~$5b) of the acquisitions completed by upstream MLPs. In our view, LINE's superior liquidity, access to capital and size position the company to build upon this trend. In 2013, we expect another active year given the continued strain on E&P budgets, and we are forecasting $2b of acquisitions by LINE.”
Linn Energy closed on Tuesday at $38.87.
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