UPDATE: Bank of America Upgrades Kayne Anderson Energy to Neutral on Good Market Position

In a report published Wednesday, Bank of America analyst Gabe Moreen upgraded the rating on Kayne Anderson Energy Development Co. (NYSE: KED) from Underperform to Neutral, and raised the price target from $24.00 to $26.00.

In the report, Bank of America noted, “KED has made strides at some of its private MLP investments with the IRP sale and IPO of Direct Fuels, however, VantaCore continues to pay PIK dividends. We see KED's current yield as fairly compensating investors for the higher business risk profile of its private MLP portfolio. While we see KED's ability to redeploy capital into additional private MLPs as somewhat uncertain, we believe it is positioned well to invest proceeds from the EMES IPO.”

Kayne Anderson Energy Development Co. closed on Tuesday at $24.24.