UPDATE: Credit Suisse Initiates Coverage on Midcoast Energy Partners on Transparent Distribution Growth at Attractive Price

In a report published Wednesday, Credit Suisse analyst John Edwards initiated coverage on Midcoast Energy Partners MEP with an Outperform rating and $24.00 price target. In the report, Credit Suisse noted, “We are initiating coverage of Midcoast Energy Partners (MEP) with an Outperform rating and a $24 target price. MEP owns an initial 39% interest in Midcoast Operating, LP, which is Enbridge Energy Partner's (EEP) gas gathering and processing business serving East Texas, North Texas, and the Mid-Con areas of the United States. We expect that MEP will be able to grow its distribution at a ~14% CAGR through 2017, largely supported by the dropdown of EEP's remaining 61% interest in Midcoast Operating. As a result, we expect MEP to outperform our MLP coverage universe over the next 12 months.” Midcoast Energy Partners closed on Tuesday at !8.27.