UPDATE: Citigroup Initiates Coverage on Copano Energy with Buy Rating, $35 PT

In a report published Friday, Citigroup initiated coverage on Copano Energy LLC (NASDAQ: CPNO) with a Buy rating and $35.00 price target.Citigroup noted, “Our positive view is derived from CPNO's growing asset base, favorable cost of capital with no GP IDR burden and a growing contribution from its Joint Ventures. We believe that the partnership is well-positioned to benefit from increasing fee-based margin contribution from its growing infrastructure in the Eagle Ford shale play, one of the biggest and most profitable shale resource plays in the US. We estimate that CPNO should be able to grow distributions by ~8% annually through 2016. This is in-line with the peer group avg, while units trade at 70 bp yield discount to peers.”Copano Energy LLC closed on Thursday at $30.03.