Analyst Coverage:
BreitBurn is only covered by 5 Street Analysts: Citi, Deutsche Bank, RBC, Morgan Joseph and Wells Fargo. Shares were raised to Outperform at Wells Fargo on August 12th, and started a Buy at Morgan Joseph in early May.
Industry and Macro Analysis:
BreitBurn is obviously exposed to energy prices, although hedged, and with Oil near support at $75 and Natural Gas not far from $4 support, the industry trend is positive as land drillers outperform offshore drillers due to recent developments in the Gulf of Mexico. BreitBurn as a great mix of assets, and the longer term view for oil prices remains bullish, despite global growth slowing, as emerging market demand continues to rise. One concern here is that there is the potential for new tax laws that will make high yielding stocks, such as the MLPs, less attractive to investors. However, the value is here for price appreciation, and the healthy dividend still offers added value, so it is by no means a major concern.
Technical:
BreitBurn shares are consolidating after breaking out at the $15.50 level that acted as resistance for 4 months, although downside was also limited at that time. Shares would break out at $17.20 of this consolidation pattern and target a move to 22008 highs near $22.50, a suitable short term target.
This is not an offer to buy or sell securities or any kind of investment advice. Oil investment carries very high risks so consult a licensed professional making any decisions. My track record is real time @TurnKeyOil
