Deutsche Bank upgraded Energy Transfer Equity, L.P. (NYSE: ETE) from Hold to Buy with a price target of $45.00.
Deutsche analyst said, "Energy Transfer Partners (NYSE: ETP) announced it would acquire Sunoco (NYSE: SUN) (including its 32.4% of Sunoco Logistics (NYSE: SXL)) for about $50 per share or $6.3 billion (including $1 billion of net debt). Adding the SUN oil and products assets to ETP increases fee based business, reduces natural gas risk, is accretive to coverage ratios and improves the balance sheet. Accordingly, we are increasing our target price for Buy rated ETP from $56 to $57 and raising our rating for ETE to Buy with a target price of $45. These target prices are based upon the average distribution yields of the MLP group for Limited Partner and General Partner entities."
