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Raymond James Upgrades Linn as M&A Overhang is Removed

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In a report published Thursday, Raymond James analyst Kevin Smith upgraded Linn (NASDAQ: LNCO) from Outperform to Strong Buy and maintained a $37.00 price target.

Smith noted Linn Energy (NASDAQ: 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.

Latest Ratings for LNCO

DateFirmActionFromTo
Mar 2016Goldman SachsTerminatesSell
Feb 2016Wells FargoDowngradesMarket PerformUnderperform
Feb 2016CitigroupDowngradesNeutralSell

View More Analyst Ratings for LNCO
View the Latest Analyst Ratings

Posted-In: Analyst Color Upgrades Analyst Ratings

 

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