UPDATE: Bank of America Downgrades TransMontaigne Partners LP to Neutral on Increased Recontracting Risk

In a report published Thursday, Bank of America analyst Gabe Moreen downgraded the rating on TransMontaigne Partners LP TLP from Buy to Neutral, but reiterated the $50.00 price target. In the report, Moreen noted, “We are downgrading TLP to Neutral (from Buy) as its current yield of 5.3% (versus 5.7% for the Alerian MLP Index (AMZ)) may not fully reflect recontracting risk around recent and upcoming contract expirations. While TLP may contract the excess capacity associated with several of its refined products terminals and pipelines, we believe uncertainty around recontracting may prove to be a headwind. The focus on potentially attractive returns from TLP's stake in the BOSTCO project may face a partial offset in lower revenues from recontracted assets.” TransMontaigne Partners LP closed on Wednesday at $48.33.