Boardwalk Partners, Regency Partners upgraded at BAML

|About: Boardwalk Pipeline Partners... (BWP)|By:, SA News Editor

Boardwalk Pipeline Partners (BWP +3.2%) is upgraded to Neutral from Underperform with a $16 price target, up from $14, at BofA/Merrill, as reports indicate BWP has concluded a successful binding open season in contracting some legacy south-to-north pipeline capacity to a north-to-south flow, which could help stabilize BWP's base business.

BWP also may have several other potential pipeline reversals on the table, and recent natural gas spreads and volatility also may provide some near-term uplift for BWP's storage and pipeline businesses.

The firm also upgrades Regency Energy Partners (RGP +0.4%), to Buy from Neutral with a $30 price target, believing units are overly discounting RGP's tight coverage and relatively expensive up-front multiples for recent acquisitions.