UPDATE: Bank of America Merrill Lynch Upgrades CorEnergy Infrastructure Trust to Neutral, Reiterates $6.50 PT

In a report published Monday, Bank of America Merrill Lynch upgraded its rating on Corenergy Infrastructure Trust

from Underperform to Neutral, and reiterated its $6.50 price target. BofA Merrill Lynch noted, “CORR's recently completed $229mn LGS acquisition should facilitate its conversion to a REIT in 2013. We see CORR benefitting from the high quality, transparent cash flow streams from LGS. The acquisition should also facilitate a dividend bump to $0.50/share. Benefits from the LGS transaction are offset by limited organic upside potential and funding constraints associated with potential future M&A. Overall, we believe CORR deserves to trade at a higher yield than the MLP sector.” Corenergy Infrastructure Trust closed on Friday at $5.98.