UPDATE: Credit Suisse Reiterates On Targa Resources Partners LP Following APL Acquisition

In a report published Tuesday, Credit Suisse analyst John Edwards reiterated a Neutral rating on Targa Resources Partners LP (NYSE: NGLS), and raised the price target from $72.00 to $76.00.

In the report, Credit Suisse noted, “Based on our math NGLS' acquisition of Atlas Pipeline Partners, LP (APL) will be 3%/4.5% accretive in 2015/16. While this deal is credit and cash flow accretive in the long term, it exposes NGLS' cash flows to commodity headwinds from the acquired assets. Take out premium has also gone away. It benefits from a ~$78 million reduction in IDR payments to TRGP as well as ~$5 million in annual synergies from the combined operations. NGLS now expects to grow its 2015 distributions by 11-13% as against 7-9% in 2014. It will increase its quarterly distribution by $0.04/unit post close of the deal, expected in 1Q15.”

Targa Resources Partners LP closed on Monday at $59.23.