UPDATE: Citi Raises PT on Atlas Pipeline Partners to $42 (APL)

Citi is out with its report today on Atlas Pipeline Partners (NYSE: APL), raising its PT from $40 to $42.

In a note to clients, Citi writes, "We reiterate our Buy/High Risk rating and are increasing our target price to $42.00. Our new target price is based on our 12-month fwd distribution estimate of $2.40 and a target yield of 5.75%. While the average MLP yield is currently ~6.2%, we believe APL should trade at a premium due to its above average growth rate and attractive asset position in areas of rapid development. While these announcements provide the partnership with clear visibility to support significantly higher distributions, we believe APL will also have the potential to further expand processing capacity on its West Texas assets that is not currently in our model."

Shares of APL closed Thursday at $32.21, down 2.10% from Wednesday's close.