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UBS Maintains a 'Neutral' on Magellan Midstream Partners (MMP); Delivers The Goods in Q4, But Valuation High

February 8, 2012 1:36 PM EST
MMP Hot Sheet
Rating Summary:
    2 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 7 | New: 26
UBS maintains a 'Neutral' on Magellan Midstream Partners (NYSE: MMP) price target raised from $64 to $68.

UBS analyst says, "Strong Results in 4Q11...Favorable Guidance for 2012...MMP Fundamentals Remain Strong, but Valuation Keeps Us at Neutral: MMP expects 4% pipeline shipment growth in 2012. In addition, a likely mid-year tariff increase of ~8.6% should also help pipeline margins. Furthermore, we believe $90/bbl crude may prove to be a conservative assumption for butane blending. However, despite a strong forecast for 2.012-13, we believe units reflect much of that growth with their current 4.8% yield."

For an analyst ratings summary and ratings history on Magellan Midstream Partners click here. For more ratings news on Magellan Midstream Partners click here.

Shares of Magellan Midstream Partners closed at $68.45 yesterday, with a 52 week range of $51.00-$69.60.


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