Wells Fargo Upgrades Atlas Pipeline Partners, L.P. (APL) to Outperform; A Clear Roadmap For Growth

Wells Fargo upgraded Atlas Pipeline Partners, L.P. (NYSE: APL) from Market Perform to Outperform, price target range $35-37.

Wells analyst says, "Assuming NGL prices remain strong, APL has the potential to increase its distribution at a 13% CAGR over the next three years, in our view. This represents one of the highest distribution growth rates for any MLP under coverage (our universe's median CAGR forecast of 5.8%). In addition to accelerated growth, APL also benefits from exceptionally low leverage. The latter should provide the partnership with significant flexibility to finance its $400MM+ portfolio of organic growth projects and pursue additional investments. Our DDM-based valuation range suggests attractive potential upside of over 25% for the next 12 months. 2011E DCF goes from $2.39 to $2.37."

For more ratings news on Atlas Pipeline Partners, L.P. click here and for the rating history of Atlas Pipeline Partners, L.P. click here.

Shares of Atlas Pipeline Partners, L.P. closed at $30.42 yesterday.

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