UPDATE: Credit Suisse Upgrades Breitburn Energy Partners to Neutral on Accretive Acquisitions
Credit Suisse raised its rating on Breitburn Energy Partners (NASDAQ: BBEP) from Underperform to Neutral while increasing its price target from $18 to $19.
Credit Suisse noted, "In our view, BBEP's execution of ~$600mm of accretive acquisitions in 2012 has improved the sustainability of the company's distribution longer term. That said, we do remain concerned about the sustainability of distribution growth owing to the impact of lower commodity and hedge prices. With units currently yielding 10.2% (slightly above the upstream MLP peer median), we believe this risk is fairly reflected in the market. Our $19 target prices (from $18) offers a 15.0% total return potential over the next 12 months."
Breitburn Energy Partners closed at $18.16 on Wednesday.
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