UPDATE: Deutsche Bank Initiates Tallgrass Energy Partners at Hold Awaiting Upside

In a report published Monday, Deutsche Bank analyst Curt Launer initiated coverage on Tallgrass Energy Partners TEP with a Hold rating and $24.00 price target.

In the report, Deutsche Bank noted, “We are initiating coverage for TEP with a Hold and PT of $24 per unit. This is based on a target yield of 5.0% on the expected distribution of $1.21 per unit over the next year and compares to the subsector of MLPs in gathering and processing as shown in our coverage universe in Table 4. The TEP assets are very familiar to us in that they are largely from the FTC mandated assets sales that KMI made related to the El Paso deal in 2012. TEP is essentially a mid-continent and Rockies region natural gas, NGLs and oil pipeline MLP.”

Tallgrass Energy Partners closed on Friday at $21.30.