UPDATE: Bank of America Resumes Coverage on EnLink Midstream LLC with Neutral Rating, $38 PT Following DVN Deal Close

In a report published Thursday, Bank of America analyst Gabe Moreen resumed coverage on EnLink Midstream LLC ENLC with a Neutral rating and $38.00 price target. In the report, Bank of America noted, “On 21 October 2013, Devon Energy Corp (DVN), CrossTex Energy, LP (legacy XTEX) and CrossTex Energy, Inc. (legacy XTXI) announced the merger of DVN's midstream assets with XTEX and XTXI to form ENLK and ENLC, respectively. Shares of legacy XTXI have rallied since the announcement, outperforming peers (total return of +78% versus a 4% for the AMZX index)...Despite its attractive dividend growth potential, we resume coverage of ENLC with a Neutral rating (from a prior Neutral rating on XTXI) as we believe ENLC's low current yield of 1.6% leaves little room for additional yield compression and ENLC may face material incremental tax headwinds in the medium-term.” EnLink Midstream LLC closed on Wednesday at $36.40.