UPDATE: Wunderlich Securities Reiterates On BreitBurn Energy Partners LP Following Acquisition News
In a report published Friday, Wunderlich Securities analyst Abhishek Sinha reiterated a Buy rating on BreitBurn Energy Partners LP (NASDAQ: BBEP), and raised the price target from $24.00 to $25.00.
In the report, Wunderlich Securities noted, “BreitBurn Energy Partners (BBEP) and QR Energy, LP (QRE-$20.59, Hold) today announced the signing of a definitive merger agreement pursuant to which BreitBurn will acquire QR Energy in a unit-for-unit exchange implying a transaction value of approximately $3.0 billion. Upon closing of the transaction, BBEP is expected to increase distribution by 3% to $2.08/unit. We believe the QRE acquisition complements and diversifies BBEP's existing asset base and should propel long term growth. We maintain our Buy rating on the stock and assuming that the transaction would close, we are raising our price target to $25 after incorporating the changes to our model due to the acquisition.”
BreitBurn Energy Partners LP closed on Thursday at $22.23.
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