Citigroup (NYSE:C) Upgrades Teekay Offshore Partners (NYSE:TOO)

Citigroup (NYSE:C) said in a research report today it is upgrading Teekay Offshore Partners LP (NYSE:TOO) from "Hold" to "Buy."

In reference to the valuation of the company, Citi analysts said, “Our higher price target is driven by our view that TOO should be able to raise distributions to an annualized rate of $2.10/unit ($1.80 previously) over the next 12 months and that the units should trade with an 8.0% yield, only 90 basis points lower from current levels.”

Citi analysts believe the equity offering not too long ago has pushed down its unit price, and it has provided an opportunity to invest in the shares at a low entry point.

They pushed up their price target Teekay Offshore Partners from $15 a share to $26 a share.

Teekay Corp (NYSE:TK) Declares Dividend

Teekay Corporation declares dividend

The board of directors of Teekay Corp (NYSE:TK) announced they have voted for shareholders of its common stock to receive a quarterly dividend.

The cash dividend offered by the company will be $0.31625 a share.

Sharholders of record as of April 16, 2010 will receive the dividend, payable on April 30, 2010.

Teekay will also be selling three tankers to its subsidiary Teekay Tankers, which is selling shares to raise the funding.