UPDATE: Credit Suisse Reinstates Coverage on Energy Transfer Partners, Downgrades as Distribution Growth Resumption is a Good First Step

In a report published Tuesday, Credit Suisse analyst Abhiram Rajendran reinstated coverage on Energy Transfer Partners ETP with a Neutral rating, downgraded from Outperform, and $58.00 price target. In the report, Credit Suisse noted, “While we view the resumption of distribution growth and the growth prospects for 2014/15 as a positive, these are helped by IDR waivers from ETE and the outlook longer-term for LP holders is somewhat diminished by ETE taking more and the coverage cushion being fairly slim. While a clear focus on M&A over the near/mid-term (at ETP or SXL) could present opportunities, they also come with potential risks. We believe the total return outlook for ETP for the next 12 months is decent at ~11%, but is roughly in line with our group justifying a Neutral.” Energy Transfer Partners closed on Tuesday at $55.18.