Barclays Starts Western Gas Equity Partners, LP (WGP) at Overweight

Barclays initiates coverage on Western Gas Equity Partners, LP (NYSE: WGP) with a Overweight. PT $35.00.

The firm comments, "We are initiating coverage of WGP with an OW rating and $35 price target: WGP is the general partner of Western Gas Partners (WES), which is a high-growth, low-risk MLP with a strong public market track record. We forecast that WGP will be able to grow distribution by 41% in 2013 and 30% in 2014 (Q4 exit rates), based on 15% and 10% exit rate growth at WES, implying 2.4x GP/LP leverage. Our $35 price target is based on a 12-month distribution run rate of $0.9338/unit and a target yield of 2.7%, which implies 17% upside versus WGP's current trading price."

For an analyst ratings summary and ratings history on Western Gas Equity Partners, LP click here. For more ratings news on Western Gas Equity Partners, LP click here.

Shares of Western Gas Equity Partners, LP closed at $28.79 yesterday.

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