UPDATE: Bank of America Upgrades Kinder Morgan Energy Partners on Pullback Offering Good Entry Point

In a report published on Tuesday, Bank of America analyst Gabe Moreen upgraded

from Neutral to Buy and lowered the price target on the company from $91 to $89. In the report, Bank of America stated, "We upgrade KMP to Buy (from Neutral) as we believe the recent pullback in its unit price is overdone. Approximately 35% of KMP's long-term debt is largely swapped to floating rates (~$6.2bn as of 31 March 2013) and potentially negatively exposed to rising interest rates. We believe the fear of tighter monetary policy has been a significant driver of KMP's underperformance since May (KMP units declined 8.8% since 30 April 2013 versus 4.5% for the AMZ). That said, mgmt projected a 100 basis point increase in average interest rates would increase 2013 interest expense by only $57mn (~1% of our 2013 adjusted EBITDA forecast of $4,942mn)." Kinder Morgan Energy Partners closed on Monday at $80.65.