BreitBurn Energy initiated with a Buy at Stifel

|By:, SA News Editor

Breitburn Energy (BBEP +1.5%) is initiated with a Buy rating $21 price target at Stifel Nicolaus, which says shares trade at a ~3% discount to its peer group average.

BBEP's oil focused capital budget, coupled with potential future acquisitions, will drive multiple expansion in H2 2013 and 2014, the firm says.

BBEP reported "solid" Q2 results, with EBITDA up 32% Q/Q and 28% Y/Y as it beat consensus production and realized price estimates by 2% and 8% respectively.