UPDATE: S&P Capital IQ Downgrades Enbridge Energy Management LLC On Trimmed Estimates

In a report published Tuesday, S&P Capital IQ analyst S. Glickman downgraded the rating on Enbridge Energy Management LLC EEQ from Hold to Sell, but reiterated the $31.00 price target. In the report, S&P Capital IQ noted, “We cut our '14 EPS estimate by $0.19 to $0.91, and '15's by $0.26 to $1.18. Our 12-month target price of $31, left unchanged, reflects a 1.3X EV-to-EBITDA forward multiple, in line with EEQ's historical forward average. We think that EEQ's limited partner, Enbridge Energy Partners (EEP 36 Strong Sell), faces sizable capital spending needs over the medium-term, yet has below-average projected return on invested capital, a below-average distribution coverage ratio, and below-average maintenance capital spending. Meanwhile, shares of EEQ are up 25% YTD, well above the peer average.” Enbridge Energy Management LLC closed on Monday at $35.27.
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Posted In: Analyst ColorDowngradesAnalyst RatingsS&P Capital IQS. Glickman
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