Wunderlich Securities: Tortoise North American Infrastructure’s DCF/Unit To Grow 1.7% And 5.9% In 2010 And 2011

Analyst Elizabeth C Malone of Wunderlich Securities Inc reiterates her “hold” rating on Tortoise North American Infrastructure Corp TYG. The target price for TYN has been raised from $35 to $37. Wunderlich Securities says, “We are updating our net asset value per share (NAVPS) estimate slightly to reflect 2Q10 actual results and market changes since our last model run. We estimate FY10 NAVPS to be $31.14 (8.0% higher than our previous estimate of $28.82) and FY11 to be $33.74 (14.5% higher than our previous estimate of $29.48).” “TYG reiterated $0.54 DPS guidance for 3Q10 and 4Q10, but did not commit to any distribution growth thereafter. We reiterate estimated distributions of $2.16 in 2010 and are raising our 2011 estimate to $2.25. We estimate DCF coverage to be 1.04x in 2010 and 1.06x in 2011. DCF/unit is expected to be $2.25 and $2.38 in 2010 and 2011, respectively. Estimated DCF/unit implies 1.7% and 5.9% DCF/unit year-over-year growth in 2010 and 2011, respectively,” the analyst mentions. “Unlike direct investments in MLPs, an investment in TYG does not produce unrelated business taxable income in tax-exempt accounts and produces a Form 1099 rather than multiple schedule K-1s. We view TYG as suitable for fixed-income investors seeking a stable distribution,” Wunderlich Securities adds. More Analyst Ratings here.