UPDATE: Credit Suisse Assumes Coverage on Williams Partners LP with Neutral Rating, $54 PT on Long-Term Growth Opportunity, Remaining Risks

In a report published Tuesday, Credit Suisse analyst Abhiram Rajendran assumed coverage on

with a Neutral rating and $54.00 price target. In the report, Credit Suisse noted, “We remain concerned with headwinds facing the Northeast business—while we believe the bulk of the downward revisions are baked in, we are taking a cautious view as operational issues remain and as Northeast nat gas basis prices likely need to weaken further to open up supply to future demand growth hubs in the South. Despite some positive aspects to the story (Geismar expected to restart in line with the original timeframe, the dropdown of WMB's currently in service Canadian NGL/ Petchem assets adding some cushion, and opportunities for further WMB drop-downs long term), the distribution coverage is likely to remain tight through 2015 leaving little room for error. We see decent return prospects of ~14% over the next 12 months, but this is roughly in line with the group average, justifying a Neutral.” Williams Partners LP closed on Tuesday at $50.22.