UPDATE: Bank of America Upgrades Oneok Partners LP on NGL Trough, Removal of Overhang
In a report published Friday, Bank of America analyst Gabe Moreen upgraded the rating on Oneok Partners LP (NYSE: OKS) from Underperform to Buy, and raised the price target from $45.00 to $55.00.
In the report, Bank of America noted, “We upgrade OKS to Buy (from Underperform) based on an improvement in natural gas liquid (NGL) fundamentals, the removal of OKS' equity overhang, and OKS' underperformance YTD. While NGL prices remain depressed (down 31% since 2012), we have seen a rebound since June 2013 (up 19%). While we are hesitant to say the worst is definitively over for NGL pricing, we are encouraged by the recent recoupling with crude oil prices and the likely positive impact from more NGL exports (at least ex-ethane). In addition to a rebound in NGL prices, we have become more constructive on OKS following its ~$500mn overnight offering, which was arguably anticipated by the market to fund its $2.4bn 2013 capital budget. OKS has underperformed the sector YTD with a total return of (5%) versus the Alerian MLP Index (AMZ) total return of 19%.”
Oneok Partners LP closed on Thursday at $49.13.
Latest Ratings for OKS
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