UPDATE: Bank of America Initiates EV Energy Partners at Neutral on Limited Upside
Bank of America initiated EV Energy Partners (NASDAQ: EVEP) with a Neutral rating and a $62.00 price objective.
Bank of America commented, "The multiples have compressed owing to a pending sale/swap of EVEP's acreage in the Utica play. However, we think EVEP has limited upside in the near-to-intermediate term as we believe the market has already priced in $5,000-7,000 per acre for its Utica acreage. In the absence of a Utica transaction, we estimate EVEP to have a coverage ratio of less than 1x in the year 2013. strengthening DCR later in the year could warrant a more favorable view as we get more clarity from management; however, acquisition and integration issues may continue to pose risks."
EV Energy Partners closed at $53.86 on Wednesday.
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