Mizuho Securities Starts NuStar GP Holdings (NSH) at Neutral
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Mizuho Securities initiates coverage on NuStar GP Holdings (NYSE: NSH) with a Neutral rating and a price target of $26.00.
Analyst Brian Zarahn commented, "We are initiating coverage of NSH with a Neutral rating and $26 price target. Our $26 price target is based on the average of our $24 discounted cash flow model (10.25% discount rate) and $27 EV/Adjusted EBITDA (12.75x multiple in 2017) valuation methodologies. NSH offer a healthy yield of 8.3%, one of the highest among general partner peers. We believe the distribution is safe, supported by relatively stable, fee-based transportation and storage cash flows generated by underlying MLP NuStar Energy (NS). However, NSH’s high distribution yield is largely attributable to an expected below-average distribution growth rate (we do not forecast NSH or NS to post distribution growth until 2019) and a 25% incentive distribution cap vs. 50% for most other GPs. However, for patient, income-oriented investors, NSH provides a robust yield with upside potential from future NS equity issuance or distribution bumps."
Shares of NuStar GP Holdings closed at $25.50 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Rodman & Renshaw Starts Abraxas Petroleum (AXAS) at Buy
- Jefferies Cuts Price Target on Boston Beer Co. (SAM) to $140 Following Weak 3Q
- Stifel Upgrades PayPal (PYPL) to Buy Following 'Solid' Q3 Results
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!