UPDATE: Morgan Stanley Initiates Coverage on Enbridge Energy Management LLC with Underweight Rating, $28 PT on i-Share Investment Opportunity

In a report published Tuesday, Morgan Stanley analyst Stephen J. Maresca initiated coverage on

with an Underweight rating and $28.00 price target. In the report, Morgan Stanley noted, “EEQ represents an i-share investment in EEP, fully pari passu in terms of economic ownership but with the distribution to EEQ shareholders paid in-kind as a stock dividend. Arbitrage between the two securities can vary from time to time. For investors looking to participate in EEP, we believe EEP represents the more compelling way to build positions given its trading discount and favorable tax treatment. Performance will likely approximate that of EEP. However, short-term pair trading opportunities arise occasionally when the spread between the two securities widens.” Enbridge Energy Management LLC closed on Monday at $28.02.