UPDATE: Jefferies Initiates Coverage on Enterprise Products Partners LP on Unmatched Footprint

In a report published Wednesday, Jefferies analyst Christopher Sighinolfi initiated coverage on

with a Buy rating and $72.00 price target. In the report, Jefferies noted, “EPD is the largest MLP by market cap and boasts the broadest midstream footprint in the US providing non-discretionary services throughout various facets of the energy value chain. While its current ~4.6% yield is relatively low compared to its peers, we view EPD as the least risky MLP. With its robust coverage ratio (1.2x), lack of IDRs, and upcoming growth projects, we forecast a distribution CAGR of ~10% through '17 and rate the units a Buy with a $72 PT.” Enterprise Products Partners LP closed on Tuesday at $59.42.