UPDATE: Bank of America Downgrades TC Pipelines LP on Multiple Negative Factors

In a report published Friday, Bank of America analyst Gabe Moreen downgraded the rating on

from Buy to Underperform, and lowered the price target from $53.00 to $51.00. In the report, Bank of America noted, “We downgrade TCP to Underperform (from Buy) for the following reasons: 1) strong unit performance YTD (up 28%) and what we view as less attractive valuation at current levels, 2) minimal organic growth over the medium-term, 3) some remaining recontracting risk – despite limited direct commodity exposure, 4) timing of potential drop-downs from its general partner (GP), TransCanada (TRP), continues to be sporadic – despite sizeable dowry, and 5) forecasted low single digit cash distribution growth. We note our TCP re-rating is more in-line with our ratings on other dry natural gas exposed MLPs such as SEP, BWP, and EPB.” TC Pipelines LP closed on Thursday at $51.53.