UPDATE: BMO Capital Markets Initiates Market Perform On Rentech Nitrogen

In a report published Tuesday, BMO Capital Markets analyst Joel Jackson initiated a Market Perform rating on Rentech Nitrogen Partners

and initiated a price target of $22.00. In the report, BMO Capital Markets says "We are initiating coverage at Market Perform with a $22 target price, implying 10x 2015E EV/EBITDA and a 9.6% distribution yield (in line with historicals). The risk/reward on 2014/15 distributions supports a Market Perform rating, in our view. RNF does not look overly expensive on consensus, but seems reasonably valued on our lower estimates. Pasadena has execution risk, and we expect consensus to fall further in a volatile nitrogen and lower corn price/acre environment. Please refer to our report “Small-Cap Nitrogen MLP in the U.S. Corn Belt; Initiating Coverage at Market Perform” for further details." Rentech closed on Tuesday at $20.93.