UPDATE: Bank of America Merrill Lynch Initiates Coverage on ClearBridge Energy MLP Opportunity Fund with Neutral Rating

In a report published Monday, Bank of America Merrill Lynch initiated coverage on ClearBridge Energy MLP Opportunity Fund EMO with a Neutral rating. BofA Merrill Lynch noted, “We are initiating coverage of ClearBridge Energy MLP Opportunity Fund, Inc. EMO with a Neutral rating: 1) we expect moderate dividend growth over the medium-term at EMO, 2) we see EMO's recent price appreciation as better reflecting its positive attributes (YTD as of 18 October 2012, EMO produced a total return of 17.7% versus 12.9% for the average Energy MLP CEF), and 3) we expect limited upside potential from refinancing its currently low-cost leverage. EMO's MLP sector allocation should benefit from emerging production growth of domestic crude oil and natural gas liquids (NGL) as well as related expansion of infrastructure assets. We recognize ongoing investor concerns regarding weak NGL prices impacting more commodity sensitive MLPs held within EMO's portfolio. However, investments in natural gas oriented MLPs may improve, as we expect natural gas and NGL prices to increase moderately by year-end.” ClearBridge Energy MLP Opportunity Fund closed on Friday at $21.17.