Wells Fargo Starts LRR Energy, L.P. (LRE) at Outperform; Attractive Value Proposition - Secure 11% Yield And 2% Growth
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Price: $1.33 -2.92%
Rating Summary:
2 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo initiates coverage on LRR Energy, L.P. (NYSE: LRE) with an Outperform. PT $22.00.
Wells analyst says, "LRE trades at an attractive, above-average yield of 11.0%, which we view as highly secure over the next four years given the partnership’s expansive hedging portfolio and accretion from a potential debt-financed drop-down in mid-2012. We anticipate LRE’s yield could revert to the peer group median (i.e. 25% potential upside) as the partnership executes on its growth via acquisition strategy. Assuming $50 million per year of acquisitions, we forecast LRE could grow its distribution at a five-year compounded annual growth rate (CAGR) of 2.3%."
For an analyst ratings summary and ratings history on LRR Energy, L.P. click here. For more ratings news on LRR Energy, L.P. click here.
Shares of LRR Energy, L.P. closed at $17.25 yesterday.
Wells analyst says, "LRE trades at an attractive, above-average yield of 11.0%, which we view as highly secure over the next four years given the partnership’s expansive hedging portfolio and accretion from a potential debt-financed drop-down in mid-2012. We anticipate LRE’s yield could revert to the peer group median (i.e. 25% potential upside) as the partnership executes on its growth via acquisition strategy. Assuming $50 million per year of acquisitions, we forecast LRE could grow its distribution at a five-year compounded annual growth rate (CAGR) of 2.3%."
For an analyst ratings summary and ratings history on LRR Energy, L.P. click here. For more ratings news on LRR Energy, L.P. click here.
Shares of LRR Energy, L.P. closed at $17.25 yesterday.
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