UPDATE: Credit Suisse Upgrades Boardwalk Pipeline Partners LP on Growing Demand for Reversals

In a report published Tuesday, Credit Suisse analyst John Edwards upgraded the rating on

from Underperform to Outperform, and raised the price target from $15.00 to $20.00. In the report, Credit Suisse noted, “The bottom on BWP appears to be in. After a detailed review asset by asset, and after taking into account contract roll-offs, offset by likely contract reversals amid a growing demand for N to S pipeline capacity, we believe that BWP is likely to be capable of raising its distribution back to a normalized pay-out as early as 2017, though we have continued to assume 2018. Consequently, we have raised our estimated pay-out by $0.20/unit/year in 2018, to $1.60/year, followed by $0.01/unit/Q increases through 2020, 5% increases thereafter and an assumed 1% terminal growth rate.” Boardwalk Pipeline Partners LP closed on Monday at $16.19.