UPDATE: Credit Suisse Upgrades QR Energy LP to Outperform, Lowers PT
In a report published Monday, Credit Suisse Group upgraded its rating on QR Energy LP (NYSE: QRE) from Neutral to Outperform, but lowered its price target from $22.00 to $20.00.
Credit Suisse noted, “In our view, QRE is poised to outperform now that the equity overhang has been removed. Furthermore, we expect QRE to announce the dropdown of the Jay Field assets before year-end, which should be a positive catalyst. Longer term, we remain confident in QRE's ability to execute the acquire and exploit strategy given its sponsorship and experienced management team.Combined with QRE's 12% yield, we project a total return potential of 35% over the next 12 months.”
QR Energy LP closed on Friday at $16.25.
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Tags: Credit Suisse Group