UPDATE: Jefferies Initiates Coverage on ONEOK Partners LP with Buy Rating, $57 PT on Attractive Current Levels

In a report published Wednesday, Jefferies analyst Christopher Sighinolfi initiated coverage on ONEOK Partners LP OKS with a Buy rating and $57.00 price target. In the report, Jefferies noted, “OKS has a sizable Midcontinent & Rockies midstream footprint & provides non-discretionary services throughout the natural gas value chain. Units have fallen ~13% y/y as OKS faced shrinking optimization spreads, throughput issues stemming from ethane rejection, and an equity overhang. We believe these challenges are priced in & see organic expansions driving a 5-year distribution CAGR of ~6.5%. Units are attractive at current levels and we initiate with a Buy.” ONEOK Partners LP closed on Tuesday at $49.59.