Deutsche Bank Starts Spectra Energy Partners (SEP) at Buy

Deutsche Bank initiated coverage on Spectra Energy Partners (NYSE: SEP) with a Buy rating and a price target of $54.

Analyst Kristina Kazarian said, "SEP is the primary operating and investing arm of SE, representing ~70% of 2016 cash flows and constituting ~$6b of organic growth projects currently in execution. Overall, we think SEP is well positioned to weather through the current difficult environment, owing to its strong stable cash flow profile, minimal counterparty rollover risk, robust organic growth backlog, and solid balance sheet position. While the name has slightly outperformed the index on a relative basis (SEP -5%, AMZ -17% YTD), we still expect SEP to show compelling returns at current prices and rate it a Buy, particularly as bifurcation continues between the strong and weak names. Our valuation uses a 5.5% yield on CY17 DPU of $2.88, a 10x target EV/EBITDA, and a ten-year DDM."

For an analyst ratings summary and ratings history on Spectra Energy Partners click here. For more ratings news on Spectra Energy Partners click here.

Shares of Spectra Energy Partners closed at $45.30 yesterday.

You May Also Be Interested In

• Lake Street Capital Markets Starts Research Solutions Inc. (RSSS) at Buy
• HSBC Starts Auna SA (AUNA) at Buy, 'Just what the doctor prescribed'
• Southern Co. (SO) PT Raised to $73 at BofA Securities