UPDATE: Bank of America Initiates QR Energy at Buy on Discount Yield
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
|Sep 2014||Stifel Nicolaus||Downgrades||Buy||Hold|
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