QR Energy upgraded to Buy at Wunderlich

|About: QR Energy, LP (QRE)|By:, SA News Editor

QRE Energy (QRE +2.8%) is upgraded to Buy from Hold with a $24.50 price target, up from $18, at Wunderlich, which believes shares are trading at a significant discount to arbitrage parity and offers a 32% total return.

QRE and BreitBurn Energy Partners (NASDAQ:BBEP) recently announced the signing of a merger deal in which BBEP would acquire QRE in a unit-for-unit exchange; the firm notes its Buy rating is anchored on its investment thesis for BBEP, assuming that the merger would go through.