UPDATE: Bank of America Downgrades Western Gas Partners on Valuation
In a report published on Tuesday, Bank of America analyst Gabe Moreen downgraded Western Gas Partners (NYSE: WES) from Buy to Neutral and raised the price target on the company from $55 to $64.
In the report, Bank of America stated, "With WES units currently trading at a 3.6% yield (versus the Alerian MLP Index (AMZ) at 6.0%), we believe units have reached an inflection point. WES units have outperformed the AMZ YTD by 15.7% (WES is up 27.9% vs. the AMZ up 12.2%). While WES is a high quality name with a large drop-down inventory, fee-based cash flows, and expected robust cash distribution growth, we believe units have run their course."
Western Gas Partners closed on Monday at $60.93.
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