UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Seadrill Partners LLC on West Leo and West Sirius Dropdowns

In a report published Tuesday, Citigroup analyst Robin Shoemaker reiterated a Buy rating on

, and raised the price target from $36.00 to $41.00. In the report, Citigroup noted, “Our model suggests that the recently announced dropdowns of the West Leo and West Sirius semisubmersibles will be substantially accretive on the basis of both distributable cash flow per unit and earnings per unit. Our upwardly revised forecast of distributable cash flows increases our price target from $36 to $41 based on our 5.0% yield assumption. We reiterate our Buy rating on SDLP on its commitment to acquisitive growth. We have updated our SDLP model following today's closing of the $380M public equity offering and $100M equity private placement. SDLP closed the previously announced public offering of 12,880,000 common units (inclusive of the greenshoe of 1,680,000 common units) at $29.50 per common unit. The equity private placement of common units with Seadrill Limited at the same price had been increased from $50M to $100M.” Seadrill Partners LLC closed on Monday at $31.03.