UPDATE: Raymond James Initiates Coverage on Teekay Corporation with Outperform Rating, $61 PT in Transition Phase

In a report published Tuesday, Raymond James analyst Darren Horowitz initiated coverage on Teekay Corporation TK with an Outperform rating and $61.00 price target. In the report, Raymond James noted, “While Teekay Corporation is in a transition phase from an asset operator to a pure-play general partner, the parent still provides enhanced leverage to the strong distribution growth profile of Teekay LNG Partners LP and Teekay Offshore LP through its GP/IDR interest. When combining strong fundamentals of the offshore crude oil and LNG/LPG transportation market with an upcoming dropdown program, we believe TK is set to deleverage the balance sheet while benefitting via the IDRs from more stable cash flow dependent solely on LP distributions, warranting our Outperform rating.” Teekay Corporation closed on Monday at $55.15.