Barclays Maintains an 'Overweight' on Sunoco (SUN); Pieces Still Worth More than the Whole
Tweet
Share
E-mailGet Alerts SUN Hot Sheet
Price: $54.37 +0.69%
Rating Summary:
5 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
5 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Join SI Premium – FREE
Barclays maintains an 'Overweight' on Sunoco (NYSE: SUN) price target cut $2 to $48.00.
Barclays analyst, said, "Although SUN's 3Q earnings were in-line with consensus expectations, we believe the more important message was indications of progress towards unlocking the value in pieces under the SUN umbrella. On the conference call we think management signalled interest in its Philadelphia and Marcus Hook refineries, which if sold could represent potential upside to the $384 million of value included in our sum of the parts valuation. To that end, we are also encouraged by 3Q utilization of 90% for the quarter as well as the market speculation of a potential development by Sunoco Logistics (NYSE: SXL) to bring Bakken oil to the Northeast via unit train. Finally, we think SUN's current strategic review will focus on tax efficient return of cash to shareholders and ultimately, separation of SUN into two publically traded entities. Because we continue to think that SUN's sum-of-the-parts exceeds its current market valuation, we believe the outcome of the review will be the long awaited catalyst for SUN shares."
"We leave our 2011 EPS estimate for SUN unchanged at a $0.25/share loss, but adjust our 2012 estimate to $1.85 from $2.55 per share previously."
For more ratings news on Sunoco click here and for the rating history of Sunoco click here.
Shares of Sunoco closed at $38.09 yesterday.
Barclays analyst, said, "Although SUN's 3Q earnings were in-line with consensus expectations, we believe the more important message was indications of progress towards unlocking the value in pieces under the SUN umbrella. On the conference call we think management signalled interest in its Philadelphia and Marcus Hook refineries, which if sold could represent potential upside to the $384 million of value included in our sum of the parts valuation. To that end, we are also encouraged by 3Q utilization of 90% for the quarter as well as the market speculation of a potential development by Sunoco Logistics (NYSE: SXL) to bring Bakken oil to the Northeast via unit train. Finally, we think SUN's current strategic review will focus on tax efficient return of cash to shareholders and ultimately, separation of SUN into two publically traded entities. Because we continue to think that SUN's sum-of-the-parts exceeds its current market valuation, we believe the outcome of the review will be the long awaited catalyst for SUN shares."
"We leave our 2011 EPS estimate for SUN unchanged at a $0.25/share loss, but adjust our 2012 estimate to $1.85 from $2.55 per share previously."
For more ratings news on Sunoco click here and for the rating history of Sunoco click here.
Shares of Sunoco closed at $38.09 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BayCom Corp (BCML) Misses Q1 EPS by 4c
- Oceanfirst Financial (OCFC) Tops Q1 EPS by 3c
- United Bancshares, Inc. (UBOH) Reports Q1 EPS of $0.61
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Barclays, Bakken Formation, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
