UPDATE: Credit Suisse Downgrades El Paso Pipeline Partners to Neutral on Valuation

Credit Suisse downgraded El Paso Pipeline Partners

from Outperform to Neutral and raised the price target from $43.00 to $44.00. Credit Suisse analyst John Edwards wrote, "We are downgrading EPB to Neutral (from Outperform) on valuation. We are projecting decelerating distribution growth as EPB absorbs dropdowns from KMI. Our three-year CAGR of distributions is roughly 5.5%. While we believe upside remains over the next 12 months, in our opinion it is not enough to keep us at Outperform given its current level. […] Despite our rating downgrade, we are raising our TP by $1 to $44 as we believe EPB will trade at a slight premium to the AMZX given its highly predictable cash flows and distribution growth largely in-line with the sector." El Paso Pipeline Partners closed at $41.99 on Tuesday.