UPDATE: Bank of America Upgrades Regency Energy Partners LP to Buy, Raises PT as Growth is Not Fairly Reflected

In a report published Monday, Bank of America analyst Gabe Moreen upgraded the rating on

from Neutral to Buy, and raised the price target from $29.00 to $30.00. In the report, Bank of America noted, “We upgrade RGP to Buy (from Neutral) as we believe units are overly discounting RGP's tight coverage and relatively expensive up-front multiples for recent acquisitions. RGP's $8.7bn of announced acquisitions in 2013 (SUGS, PVR, Hoover and EROC midstream), expanded its scale significantly, provided an entry into the Marcellus/Utica, and should generate operational and financing synergies. Since the announcement of the EROC deal (see: Consolidator of all things midstream; another two deals) RGP units have underperformed the Alerian MLP Index (AMZ) by 3.4%. Despite what could be some messy quarters as RGP integrates PVR and EROC, we believe current levels represent an attractive entry point.” Regency Energy Partners LP closed on Friday at $26.55.