Mizuho Securities Starts Tesoro Logistics (TLLP) at Buy
- 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
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 Tesoro Logistics (NYSE: TLLP) with a Buy rating and a price target of $58.00.
Analyst Brian Zarahn commented, "We are initiating coverage of TLLP with a Buy rating and $58 price target. Our $58 price target is based on the average of our $58 discounted cash flow model (9.75% discount rate) and $58 EV/Adjusted EBITDA (13.5x multiple on 2017) valuation methodologies. TLLP offers a healthy yield, competitive growth at a reasonable price and a parent that continues to pursue midstream growth opportunities. While we expect TLLP’s distribution growth rate to decline from 17% in 2016 to a 9% CAGR through 2019 due to its larger size and GP distribution, we believe the stock is undervalued at current levels. We believe a potential catalyst in the next 1-2 years is a change in the GP distribution structure to improve TLLP’s equity cost of capital enhancing long-term growth prospects."
Shares of Tesoro Logistics closed at $48.36 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Starts Xenon Pharmaceuticals (XENE) at Buy
- PayPal (PYPL) PT Lifted to $48 at Mizuho Following Solid Q3
- Jefferies Cuts Price Target on Reliance Steel (RS) Following 3Q EPS Miss and Guidance
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!