Raymond James Upgrades Linn Co as M&A Overhang is Removed

In a report published Thursday, Raymond James analyst Kevin Smith upgraded Linn Co, LLC LNCO from Outperform to Strong Buy and maintained a $37.00 price target. Smith noted Linn Energy, LLC LINE achievements over the past two months. The analyst reported, "(1) The company announced that its S-4 was declared effective by the SEC, (2) LINN Energy raised its cash flow guidance for 4Q13, and (3) the partnership successfully closed the LinnCo/Berry merger." Raymond James further analyzed the LinnCo/ Berry Petroleum acquisition. adding that this transaction will help lower Linn Energy's production decline rate, strengthen their balance sheet, and boost distributable cash flow. Raymond James added that the weakness in Linn Co shares, decreasing approximately 9%, is only temporary. The analyst expects Linn Co shares to hold the historical average of an approximate 7-8% premium over Linn energy. Shares of Linn Co are up 3.70% at $29.05. Linn Energy is trading up 3.63% at $29.84.