Referenced Stocks

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

By Midnight Trader,  October 24, 2012, 12:59:12 PM EDT

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 The NASDAQ OMX Group, Inc.


This article appears in: Investing, Commodities

Referenced Stocks: SEP



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