Wunderlich Securities Downgrades Sunoco Logistics Partners (SXL) to Hold

October 27, 2009 7:14 AM EDT

Wunderlich Securities downgrades Sunoco Logistics Partners (NYSE: SXL) from Buy to Hold. Price target lowered from $63.50 to $60.

Wunderlich analyst says, "Sunoco Logistics reported weak volumetric and margin results for 3Q09 and a distribution of $1.065 that was a touch light vs. our $1.07 estimate. Given the 16% lower-than-anticipated free cash flow in the quarter, headwinds from very tough 2010 comparables as the contango trade of 1H09 disappears in the rearview mirror, and our 2009 EBITDA estimate of $343mm at the bottom of the $340mm to $360mm range (reiterated by management on the call), we are moving to Hold from Buy and reducing our target to $60.00 from $63.50 on shares. We still view SXL as a core equal weight position in a diversified MLP portfolio given the firm's implicit option value should a strong
contango reemerge."

To see more analyst ratings on SXL Click Here.

Sunoco Logistics Partners L.P. engages in the transport, terminalling, and storage of refined products and crude oil, as well as the purchase and sale of crude oil in the United States.

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• Crude Oil
• Wunderlich Securities

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