Global Hunter Securities Downgrades Enbridge Energy Partners (EEP) After Downward Revision to 2012; Prefer KMP, PAA & TLLP

July 18, 2012 9:15 AM EDT
Get Alerts EEP Hot Sheet
Price: $25.57 -0.2%

Rating Summary:
    10 Buy, 7 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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Global Hunter Securities downgraded Enbridge Energy Partners (NYSE: EEP) from Buy to Neutral with a price target of $29.00 (from $34.00).

Analyst, Bernard Colson, said, "...we believe a weakening US economy and high propane and ethane inventories are indications that NGL prices may stay lower for longer. It now seems likely that EEP will operate through 2012 at a distribution coverage ratio of less than 1.0x, making slower distribution growth the most probable outcome. In addition, we believe the MLP will most likely issue equity to reduce leverage before the end of 2012."

"At the same time, we are raising our price targets and maintaining ratings on Kinder Morgan (NYSE: KMP)(from $84 to $86), Plains All American (NYSE: PAA)(from $82 to $84) and Tesoro Logistics (Nasdaq: TLLP)(from $39 to $41), all of which seem well positioned to weather the recent declines in NGL prices and gross processing spreads. Lastly, we publish a spreadsheet that outlines financial leverage across our MLP coverage in an effort to predict equity needs."

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

Shares of Enbridge Energy Partners closed at $30.27 yesterday.

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