UPDATE: Jefferies Downgrades Williams Partners LP on Valuation

In a report published Thursday, Jefferies analyst Christopher Sighinolfi downgraded the rating on

from Buy to Hold, and lowered the price target from $55.00 to $52.00. In the report, Jefferies noted, “With two large investors having recently achieved a mutual agreement with WMB under which each will have a representative promptly appointed to the Company's Board, we believe something transformative may be in the works. We recognize that WMB trades at a material discount to peers with similar rates of dividend growth, but believe it will not realize its full valuation potential without first restoring the health of WPZ cash flows & DCF coverage. To that end, we have contemplated various scenarios which aim to achieve this goal; however, as each is predicated on numerous sequential 'if' statements, we have not included any in our formal valuation analysis.” Williams Partners LP closed on Wednesday at $50.31.