UPDATE: Oppenheimer Assumes Coverage on Enbridge Energy Partners at Perform on Valuation

In a report published Wednesday, Oppenheimer analyst Bernard Colson assumed coverage on Enbridge Energy Partners (NYSE: EEP), downgraded the rating from Outperform to Perform, and removed the $36.00 price target.

In the report, Oppenheimer noted, “We assume coverage of EEP with a Perform rating and remove our $36 price target. We believe EEP remains an attractive choice for investors seeking a solid, relatively high current yield. However, total return prospects are less attractive vs. peers, in our view, as growth remains elusive despite growth opportunities across the footprint. EEP has taken steps to reduce equity needs, but is still in a multi-year period of sub-1x coverage and massive capital spending. It is in this part of the cycle where the sponsor becomes integral to continued successful execution. ENB has been a consistent booster to the strength and outlook of EEP, and provides an effective safety net to the current distribution, in our view.”

Enbridge Energy Partners closed on Tuesday at $32.20.