Morgan Keegan Maintains Regency Energy Partners (RGNC) Outperform Rating

Morgan Keegan analysts John D. Edwards and Scott Fogleman maintained their Outperform rating for shares of Regency Energy Partners LP (Nasdaq: RGNC)

The Morgan Keegan analysts noted that Regency Energy Partners LP's financial results were largely in line with estimates.

They largely based their Outperform rating on their belief that Regency Energy Partners LP was on its way to investment grade status and that shareholders would earn an 8.3% yield until it got there.

The Morgan Keegan analysts wrote: "Our confidence in the outlook for RGNC remains solid and we believe that downside risks are offset by the large upside opportunity presented by investing in RGNC units. Consequently, we believe investors should initiate or add to existing positions with a 3+ year time horizon in mind. We remind investors that while we do not envision a distribution increase until H2:10, investors can enjoy a 8.3% yield while waiting for the potential opportunities to be realized."