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MLP Rating Updates for the Week Ending May 25

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Spectra Energy Partners

Spectra Energy Partners (SEP) was downgraded by Raymond James in the week ending May 25. Raymond James downgraded Spectra Energy Partners to “market perform,” which is equivalent to “hold” from “outperform,” which is equivalent to “buy.” Spectra Energy Partners’ recent downgrade came after its general partner, Enbridge (ENB), announced the acquisition of its limited partnerships in all of the stock deals. Now, 70.6% of the analysts rate Spectra Energy Partners as a “hold,” 17.6% rate it as a “buy,” and 11.8% rate it as a “sell.” Spectra Energy Partners’ average target price of $37.1 implies ~21% upside potential from the current price levels.

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Williams Partners

Raymond James downgraded Williams Partners (WPZ) to “outperform” from a “strong buy.” Raymond James increased William Partners’ target price to $46 from $42. Stifel also downgraded the partnership to “hold” from “buy.” Now, 70.6% of the analysts rate Williams Partners as a “buy” and 29.4% rate it as a “hold.” Williams Partners’ average target price of $45.4 implies ~14% upside potential from the current price levels.

Alliance Resource Partners

Alliance Resource Partners (ARLP), the MLP involved in coal production and marketing, was upgraded by MKM Partners to “buy.” MKM Partners also increased Alliance Resource Partners’ target price to $22 from $21. All of the analysts surveyed by Reuters rate Alliance Resource Partners as a “buy.” Currently, Alliance Resource Partners is trading below the low range ($20) of analysts’ target price. The average target price of $24.5 implies ~29% upside potential from the current price levels.

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