UPDATE: UBS Starts El Paso Pipeline Partners (EPB) at Neutral

(Updated - April 10, 2014 12:05 PM EDT)

UBS initiated coverage on El Paso Pipeline Partners (NYSE: EPB) with a Neutral rating and a price target of $32.00.

Analyst Shneur Z. Gershuni stated, "EPB is a natural gas transportation MLP which derives roughly 90% of its revenue from FERC regulated pipeline tariffs. Long term contracts are common however EPB is facing some re-contracting coming up over the next few years which will pose some headwinds for the partnership. Despite this uncertainty we feel dropdowns will keep EPB hovering around 1.0x coverage on a flat distribution until organic projects can come online. Current yield presents a reasonable risk/reward for typically stable assets."

For an analyst ratings summary and ratings history on El Paso Pipeline Partners click here. For more ratings news on El Paso Pipeline Partners click here.

Shares of El Paso Pipeline Partners closed at $31.61 yesterday.

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