Barclays Maintains an 'Equalweight' on Magellan Midstream Partners (MMP); Oil Projects Support Growth Prospects

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MMP Hot Sheet

Rating Summary:
2 Buy, 5 Hold, 1 Sell

Rating Trend:

Up

Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82

Barclays maintains an 'Equalweight' on Magellan Midstream Partners (NYSE: MMP) price target raised $2 to $66.00.

Barclays analyst says, "Rising expansion capex, largely for crude oil infrastructure, provides visibility on distribution growth. Combining higher 2012 expansion capex, driven by crude oil related projects and a low cost of capital, MMP should sustain a healthy 7% distribution growth rate, in our view. We are modestly raising our price target to $66 to reflect a $0.06 increase in our distribution estimate from rolling forward our forecast one quarter and modest yield compression due to improving growth visibility from the Longhorn pipeline reversal. Our $66 price target is based on a 12-month distribution run rate of $3.42 (previously $3.36) and a target yield of 5.15% (previously 5.25%)."

For more ratings news on Magellan Midstream Partners click here and for the rating history of Magellan Midstream Partners click here.

Shares of Magellan Midstream Partners closed at $64.08 yesterday, with a 52 week range of $51.00-$65.92.

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