UPDATE: Raymond James Reiterates On Legacy Reserves LP On Lowered Estimates

In a report published Thursday, Raymond James analyst Kevin Smith reiterated an Outperform rating on Legacy Reserves LP (NASDAQ: LGCY), and raised the price target from $29.00 to $32.00.

In the report, Raymond James noted, “Legacy continues to de-risk its story. First with the WPX Energy transaction, creating a potential dropdown partner, and now lowering its equity cost of capital by issuing preferreds vs. common stock. Given the improved balance sheet, we now model y/y 2014 distribution growth of ~3.6% vs. previously estimating flat 2H14 distributions.

"Longer term, we expect the growth pace to accelerate due to Legacy's evolving dropdown story and high rate of return organic growth program. We reiterate our Outperform rating and raise our target price from $29 to $32.”

Legacy Reserves LP closed on Wednesday at $29.42.