UPDATE: Credit Suisse Reinstates Coverage on Regency Energy Partners LP, Upgrades to Outperform, Raises PT on Multiple Positive Catalysts

In a report published Tuesday, Credit Suisse analyst Abhiram Rajendran reinstated coverage on Regency Energy Partners LP RGP with an Outperform rating, upgraded from Neutral, and $30.00 price target, up from $24.00. In the report, Credit Suisse noted, “The significant pressure that RGP faced after the PVR transaction announcement has partially corrected thanks to the EROC/Hoover deals, and we see a continued upturn in the stock driven by a significant transformation that the company has been making to a more stable story. We admit that the multiple transactions add risk to the story, but believe the risk/reward is skewed firmly to the upside. We think the PVR, EROC and Hoover deals add $3-4/unit to RGP (w/ drivers to support more) and move the overall portfolio to a more fee-based mix focused on G&P. Despite the fact that RGP has started to come back, we believe the current price presents an attractive entry point (we see a ~23% total return outlook over the next 12 months to our $30 TP).” Regency Energy Partners LP closed on Tuesday at $26.00.