UPDATE: Bank of America Initiates Coverage on Clearbridge Energy MLP Total Return Fund on Valuation

In a report published Monday, Bank of America analyst Gabe Moreen initiated coverage on Clearbridge Energy MLP Total Return Fund (NYSE: CTR) with a Neutral rating.

In the report, Bank of America noted, “We believe CTR's current yield fairly reflects underlying MLP sector characteristics. YTD as of 13 September 2013, CTR produced a total return of 18% versus 13/19% for the average Energy MLP CEF and Alerian MLP Total Return Index (AMZX), respectively. We see moderate dividend growth over the medium-term at CTR and expect limited upside potential from refinancing its currently low-cost leverage. CTR's MLP sector allocation should benefit from production growth of domestic crude oil and natural gas liquids (NGL) as well as related expansion of infrastructure assets. Of late, NGL pricing and the frac spread have turned from a headwind to a tailwind, in our view. This should have positive implications for CTR's portfolio, which has a heavier weighting (compared to other ClearBridge MLP CEFs) of MLPs that own natural gas gathering and processing (G&P) assets.”

Clearbridge Energy MLP Total Return Fund closed on Friday at $21.45.