UPDATE: JP Morgan Upgrades Teekay Offshore Partners to Overweight on Emerging Fleet Growth

JP Morgan raised its rating on Teekay Offshore Partners

from Neutral to Overweight and increased its price target from $31.70 to $33.50. JP Morgan commented, "Our upgrade to an Overweight recommendation reflects an updated accounting of likely fleet growth over the next 18 months resulting in accelerated average DPU growth (2013e 6% vs. previous 1%) and a likely continuation of a narrowing discount to the Alerian MLP index (current 8.4% ‘13e yield, 6.7% at our target vs. Alerian 6.1%). Our upgraded PT (+6%) implies c.30% upside potential." Teekay Offshore Partners closed at $26.46 on Monday.