UPDATE: Credit Suisse Initiates Coverage on Crosstex Energy with Outperform Rating, $18 PT

In a report published Friday, Credit Suisse Group initiated coverage on Crosstex Energy LP

with an Outperform rating and $18.00 price target. Credit Suisse noted, “We are initiating coverage of XTEX with an Outperform rating, as we believe that the mostly fee-based revenues produced by XTEX's diverse asset base and projected distribution growth forecast is undervalued at its 9.6% current yield. Because drilling activity continuing to decrease in XTEX core areas of natural gas gathering in North Texas and Louisiana, XTEX has recently branched out to areas of increasing activity, such as the Permian, Eagle Ford, and Utica plays. In addition, XTEX is bolstering its PNGL segment with its two-phased $690mm Cajun-Sibon NGL transportation and fractionation expansion.” Crosstex Energy LP closed on Thursday at $13.72.