UPDATE: Morgan Keegan Downgrades Energy Transfer Partners to Market Perform

Morgan Keegan has published a research report on Energy Transfer Partners (NYSE: ETP) and has downgraded the company from Outperform to Market Perform as the company is deferring distribution growth for another year.

In the report, Morgan Keegan writes, "We are lowering our DCF/unit forecast and EBITDA forecast going forward. Our FY2012 DCF/unit estimate drops by $0.18 to $3.92 while EBITDA falls by $98mm to $2.1B. We are also pushing distribution growth resumption out another year, to 2013. With zero distribution growth forecast for 2012, we are lowering our price target by $3 to $49. We are maintaining our target yield range of 7%-7.5% giving a 12-month valuation range of $48-$51. Adding $3.575 in distributions gives a total return potential of 7%-13% thereby resulting in our downgrade to Market Perform."

Morgan Keegan has also lowered the price target from $52 to $49 on Energy Transfer Partners, which is currently trading up $0.40 from yesterday's $48.27 closing price.