Mizuho Securities Starts Magellan Midstream Partners (MMP) at Neutral
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) to Acquire B/E Aerospace (BEAV) for $6.4B
- TD Ameritrade (AMTD) to Acquire Scottrade in $4B Cash & Stock Deal
- Oil prices under pressure as Iraq resists joining output cut
- China Oceanwide to Acquire Genworth Financial (GNW) for $2.7B
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Mizuho Securities initiates coverage on Magellan Midstream Partners (NYSE: MMP) with a Neutral rating and a price target of $73.00.
Analyst Brian Zarahn commented, "We are initiating coverage of MMP with a Neutral rating and $73 price target, based on the average of our $75 discounted cash flow model (8.25% discount rate) and $71 EV/Adjusted EBITDA (16x multiple in 2017) valuation methodologies. MMP is a stable, investment grade liquids infrastructure-focused MLP with a low cost of capital, healthy distribution coverage and reasonable growth rate for a large cap name. Stability supported by primarily fee-based cash flows generated from transportation and storage assets. Low cost of capital underpinned by BBB+ credit rating (highest in MLP sector) and no general partner incentive distribution rights structure. Our hold rating is based on valuation and our assumption of modest decline in long-term distribution growth rate from double-digit to levels of past few years to 7% CAGR to 2019."
Shares of Magellan Midstream Partners closed at $70.24 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- FBR Capital Starts MedEquities Realty Trust (MRT) at Outperform
- PayPal (PYPL) PT Lifted to $48 at Mizuho Following Solid Q3
- PayPal (PYPL) PT Raised to $47 at Credit Suisse; Results Just 'Ok' But Visability Increases Conviction
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Sign 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!