UPDATE: Jefferies Initiates Coverage on Spectra Energy on Lesser Value Offering

In a report published Wednesday, Jefferies analyst Christopher Sighinolfi initiated coverage on Spectra Energy Corp. SE with a Hold rating and $34.00 price target. In the report, Jefferies noted, “SE boasts a premiere portfolio of NA midstream assets, ~$11B in pending SEP drop-downs, an IG-rated balance sheet, accelerated dividend growth potential, and ~$25B in investment opportunities across its diverse footprint. However, shares are up ~21% YTD and now trade with a yield close to all-time lows. Despite its streamlined organizational structure and improved dividend growth outlook, we believe peers offer better value and are initiate with a Hold.” Spectra Energy Corp. closed on Tuesday at $33.11.