Seeking Alpha

Baird issues six MLP downgrades: NGL, NSLP, PAGP, SMLP, TEP, WHZ

  • Robert W. Baird refreshes its outlook for master limited partnerships with six downgrades: five high-growth partnerships that now look fairly valued - NGL Energy Partners (NGL -1.8%), New Source Energy (NSLP -4%), Plains GP Holdings (PAGP -0.3%), Summit Midstream Partners (SMLP -0.6%) and Tallgrass Energy Partners (TEP -2.7%) - and are cut to Neutral from Outperform, and a reduction for Whiting USA Trust II (WHZ -0.7%) to Underperform from Neutral on elevated commodity risk.
  • The firm recommends recycling capital into its top investment ideas: ONEOK Partners (OKS -1.2%), Plains All American Pipeline (PAA +0.9%), Rose Rock Midstream (RRMS +0.2%) and Crosstex Energy LP (XTEX -1.5%)
  • Despite downgrading multiple high-quality MLPs, Baird says its long-term bullish view on the sector remains unchanged (Briefing.com).
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Comments (3)
  • Jsuse
    , contributor
    Comments (36) | Send Message
     
    Why the downgrade?
    6 Mar 2014, 07:33 AM Reply Like
  • ahouseoforange
    , contributor
    Comments (421) | Send Message
     
    probably because the ones they downgraded for the time being have reached their price targets and not much to gain in the near term.
    13 Mar 2014, 10:19 AM Reply Like
  • ahouseoforange
    , contributor
    Comments (421) | Send Message
     
    I still prefer PAGP over PAA as PAGP simply is a leveraged bet on PAA. PAGP has appreciated quite a bit more since the IPO vs. PAA's stock performance.
    13 Mar 2014, 10:19 AM Reply Like
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