Wunderlich Securities Downgrades Energy Transfer Equity to Hold, Maintains PT at $45

Wunderlich Securities downgraded its rating on Energy Transfer Equity

from Buy to Hold. At the same time, Wunderlich left its price target unchanged at $45 after the company announced it is acquiring its rival Southern Union

. In a research report published today, Wunderlich states, "Energy Transfer Equity, L.P. (

) announced a deal to acquire Southern Union Company (SUG-NR) for $7.9 billion. Although the deal should be accretive once it closes and the partnership could realize further benefits, we believe at current levels ETE's units are fairly valued. We are downgrading ETE's units to Hold from Buy. The units increased 8.2% yesterday and are up 17.6% year-to-date. We are maintaining our $45 price target on ETE units." On Thursday, Energy Transfer added 8.22% to its value to close the day at $45.96.