UPDATE: Citigroup Initiates LinCo at Buy on Oil and Gas Exposure Quality
Citigroup initiated coverage on LinnCo (NASDAQ: LNCO) with a Buy rating and a $41.50 price target.
Citigroup commented, "LinnCo provides an opportunity for investors to invest in an oil and gas exploration and production company without worrying about onerous tax reporting requirements. This is due to the fact that LinnCo is formed as a corporation (i.e. will be taxed as such) and investors will receive a form 1099-DIV (i.e. can be held in retirement accounts) rather than a schedule K-1. In addition, investors will generally not have unrelated business taxable income and will not be required to file state income tax returns due to ownership of LNCO shares."
LinnCo closed at $38.70 on Wednesday.
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