Deutsche Bank Downgrades Northern Teir Energy Inc (NTI) to Hold

November 14, 2012 6:59 AM EST
Get Alerts NTI Hot Sheet
Price: $21.15 --0%

Rating Summary:
    3 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 17 | New: 10
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Deutsche Bank downgraded Northern Teir Energy Inc (NYSE: NTI) from Buy to Hold with a price target of $25.00.

The firm comments, "Variable payout Mid Con refining MLP Northern Tier (NTI) reported clean earnings of $1.42/unit vs DBe at $1.43 and consensus of $1.64. The excellent quarterly profitability implies exceedingly cheap valuation, so that quarterly adjusted EBITDA of $250m represents annualized EV/EBITDA of 2.2x, while the $1.48/unit distribution for only 2 months since the IPO implies 35% annual yield. However, we see a seasonal sequential decline in earnings in Q4 followed by typically-weak Q1 and costly turnarounds, and on a normalized mid-cycle distribution basis the stock looks fully valued. We are in a cyclical short term negative stance on refining."

For an analyst ratings summary and ratings history on Northern Teir Energy Inc click here. For more ratings news on Northern Teir Energy Inc click here.

Shares of Northern Teir Energy Inc closed at $24.50 yesterday.

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