Goldman sees buy-the-dip opportunity in Linn Energy, LinnCo

|About: Linn Energy, LLC (LINEQ)|By:, SA News Editor

Goldman Sachs sees the two-day 10% drop in Linn Energy (LINE -5.3%) following Q2 results as a buy-the-dip opportunity, maintaining Buy recommendations on LINE and LinnCo (LNCO -6.7%) with respective $34 and $35 price targets.

Goldman believes LINE was prudent in pulling back on plans for a distribution increase given uncertainties around the Berry Petroleum (BRY -1.2%) acquisition and coverage currently running below 1x.

The firm reiterates concerns over LINE's hedge accounting and maintenance capital are overblown.