UPDATE: RBC Capital Markets Upgrades Crosstex Energy on Positive Outlook
In a report published Tuesday, RBC Capital Markets analyst TJ Schultz upgraded the rating on Crosstex Energy (NASDAQ: XTEX) from Sector Perform to Outperform, and reiterated the $29.00 price target.
In the report, RBC Capital Markets noted, “The Crosstex Devon Midstream combination should result in a lower-risk investment-grade MLP, with attractive sponsor support offering increasing organic and dropdown growth options. Within this context, we think the 5.6% yield and above-average distribution growth outlook screens attractively to other investment-grade MLPs and we move to Outperform. Execution on new projects is a key risk, but management has proven out a diverse project slate this year.”
Crosstex Energy closed on Monday at $24.20.
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