Mizuho Securities Starts Sunoco (SUN) at Neutral

September 30, 2016 8:16 AM EDT
Get Alerts SUN Hot Sheet
Price: $26.70 +0.15%

Rating Summary:
    8 Buy, 12 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Mizuho Securities initiates coverage on Sunoco (NYSE: SUN) with a Neutral rating and a price target of $31.00.

Analyst Brian Zarahn commented, "We are initiating coverage of SUN with a Neutral rating and $31 price target. Our price target is based on the average of our $35 discounted cash flow model (10.75% discount rate) and $27 EV/EBITDA (11x multiple on 2017) valuation methodologies. SUN offers a healthy 11% yield and exposure to relatively stable wholesale and retail fuels distribution. Our rating is driven by high leverage from acquisitions and muted distribution growth over the next few years. That being said, we do not expect the distribution to be reduced. So for patient, income-oriented investors, SUN provides a double-digit yield."

For an analyst ratings summary and ratings history on Sunoco click here. For more ratings news on Sunoco click here.

Shares of Sunoco closed at $29.18 yesterday.

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