Goldman Sachs Downgrades Sunoco Logistics Partners (SXL) to Sell
Tweet Send to a FriendGet Alerts SXL Hot Sheet
Price: $64.23 -1%
Rating Summary:
4 Buy, 7 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
4 Buy, 7 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade SXL Now!
Goldman Sachs downgraded Sunoco Logistics Partners (NYSE: SXL) from Neutral to Sell with a price target of $36 (up from $30).
The firm said valuation implies a materially higher growth rate than they believe its assets are capable of.
Goldman notes SXL's current 4.1% yield implies cash flow growth in the low-teens, which is higher than their view that distributions will rise 7%-8% annually over the next four years. Comparable Plains (NYSE: PAA) trades at a 90 bp discount to SXL despite a similar growth profile but mroe attractive fee-based internal initiatives. Also Magellan (NYSE: MMP) trades at a 40 bp discount to SXL on distribution growth of 9%-10%.
For an analyst ratings summary and ratings history on Sunoco Logistics Partners click here. For more ratings news on Sunoco Logistics Partners click here.
Shares of Sunoco Logistics Partners closed at $40.40 yesterday, with a 52 week range of $33.43-$107.51.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The firm said valuation implies a materially higher growth rate than they believe its assets are capable of.
Goldman notes SXL's current 4.1% yield implies cash flow growth in the low-teens, which is higher than their view that distributions will rise 7%-8% annually over the next four years. Comparable Plains (NYSE: PAA) trades at a 90 bp discount to SXL despite a similar growth profile but mroe attractive fee-based internal initiatives. Also Magellan (NYSE: MMP) trades at a 40 bp discount to SXL on distribution growth of 9%-10%.
For an analyst ratings summary and ratings history on Sunoco Logistics Partners click here. For more ratings news on Sunoco Logistics Partners click here.
Shares of Sunoco Logistics Partners closed at $40.40 yesterday, with a 52 week range of $33.43-$107.51.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Bernstein Cuts BlackBerry (BBRY) to Underperform; Notes Weak BB10 Traction
- Lazard Raises PT on Chicago Bridge & Iron (CBI) to $75
- Oppenheimer Downgrades Aeropostale, Inc. (ARO) to Perform
Create E-mail Alert Related Categories
Analyst PT Change, Downgrades, Hot DowngradesRelated Entities
Goldman Sachs
Login with Facebook
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!
