Analyst Actions: Spectra Energy Partners Upgraded, Target Price Raised at Credit Suisse, Shares Rise 2%


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Shares of Spectra Energy Partners. LP ( SEP ) are up 2% to $31.38 after it was upgraded by Credit Suisse to outperform from underperform. The price target was also raised from $31 to $34.

Credit Suisse said it expects an increase in its distribution growth rate from the current 3% to roughly 6% through 2014. Given the highly predictable nature of SEP's cash flows we believe investors will likely bid down the yield to rough parity with the AMZX if not a slight premium.

"We are raising our target price by $3 to $34 and lowering our yield target range by 50 bps to 5.75%-6.25% which would indicate parity to the AMZ benchmark," said Credit Suisse. "Our total return outlook is 14%-23% and includes $2.015 in expected distributions over the next 12 months which justifies our raise to outperform (from underperform)."

SEP is trading within a 52-week range of $28.98 - $33.27.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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