Market Overview

UPDATE: Wunderlich Securities Upgrades QR Energy LP Following Merger Agreement News


In a report published Monday, Wunderlich Securities analyst Abhishek Sinha upgraded the rating on QR Energy LP (NYSE: QRE) from Hold to Buy, and raised the price target from $18.00 to $24.50.

In the report, Wunderlich Securities noted, “QR Energy, LP (QRE) and BreitBurn Energy Partners LP (BBEP-$21.79, Buy) recently announced the signing of a definitive merger agreement pursuant to which BreitBurn will acquire QR Energy in a unit-for-unit exchange implying a transaction value of approximately $3.0 billion, including QR Energy's existing net debt and outstanding Class C Convertible Preferred Units. BBEP is expected to issue 72mm units, assume QRE debt, and pay $350mm to QRE preferred unit holders. On the heels of the announced transaction, we are upgrading QRE to Buy and raising its price target to $24.50. We believe QRE is trading at a significant discount to arbitrage parity and offers a 32% total return. Our Buy rating on the stock is anchored on our investment thesis for BBEP assuming that the merger would go through.”

QR Energy LP closed on Friday at $20.15.

Latest Ratings for QRE

Nov 2014CitigroupMaintainsNeutral
Sep 2014Stifel NicolausDowngradesBuyHold
Jul 2014CitigroupMaintainsNeutral

View More Analyst Ratings for QRE
View the Latest Analyst Ratings


Related Articles (QRE)

View Comments and Join the Discussion!

Posted-In: Abhishek Sinha Wunderlich SecuritiesAnalyst Color Upgrades Analyst Ratings

Latest Ratings

JOBAlliance Global PartnersUpgrades2.5
RARECanaccord GenuityMaintains91.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at