UPDATE: Stifel Nicolaus Initiates Buy, $20 PT on LRR Energy

Stifel Nicolaus initiates coverage on LRR Energy

with a Buy rating and a $20 target price as the stock presents attractive yields and likely 2012 growth. Stifel Nicolaus comments, "We view LRE units as a method of gaining exposure to established oil and gas production via an alternative asset class. With a $0.475/unit minimum quarterly distribution, LRE units are projected to yield 11.0%, more than 900 basis points above the 10-year U.S. Treasury Note yield. We anticipate distributions to grow in FY12 and currently forecast a 4Q12 distribution per unit (

) of $0.495, 4% higher than the initial payout." LRE closed at $17.25 per share on Tuesday.