Market Overview

UPDATE: Bank of America Initiates QR Energy at Buy on Discount Yield

Share:
Related QRE
Oiltanking Partners To Join The Alerian MLP Index And Alerian MLP Equal Weight Index
UPDATE: Stifel Downgrades QR Energy LP On Pending Acquisition By Breitburn

In a report published on Friday, Bank of America analyst Abhishek Sinha initiated coverage on QR Energy (NYSE: QRE) with a Buy rating and a $20 price objective.

In the report, Bank of America stated, "QRE is trading at a 20% discount on distribution yield with a prospective yield of 11.6% versus the sector average of 9.7%. The company is also trading at a 12% discount on forward EV/EBITDA with a current forward multiple of 7.9x versus a sector average at 9.2x. With 69% liquids production, QRE has a higher liquids- weighted portfolio than the peer average of 44%. We remain constructive on its liquids rich portfolio, supported by an aggressive hedging strategy and potential upside from acquisitions."

QR Energy closed on Thursday at $17.13.

Latest Ratings for QRE

DateFirmActionFromTo
Nov 2014CitigroupMaintainsNeutral
Sep 2014Stifel NicolausDowngradesBuyHold
Jul 2014CitigroupMaintainsNeutral

View More Analyst Ratings for QRE
View the Latest Analyst Ratings

Posted-In: Abhishek Sinha Bank of AmericaAnalyst Color Initiation Analyst Ratings

 

Related Articles (QRE)

View Comments and Join the Discussion!