Buckeye Partners (BPL) Upgraded On Strategic Initiative

Analyst Ethan Bellamy of Wunderlich Securities upgrades Buckeye Partners (NYSE: BPL) from "hold" to "buy." The target price for BPL has been raised from $51.50 to $60.00.

Wunderlich Securities said, “We are raising our target on Buckeye Partners (BPL) to $65 and upgrading our rating from Hold to Buy as we incorporate a $500 MM expansion project during FY11 to export NGLs from the Marcellus Shale. Yesterday, Buckeye announced a non-binding open season to gauge interest in the Union Pipeline to take NGLs to Ontario.”

Wunderlich Securities added, “We now expect EBITDA of $390 MM for FY10 after updating our project and equity raise assumptions. We caution investors that the project remains in a very early stage, but strategically we believe this is a smart goal for the partnership.”

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