Wells Fargo Downgrades Buckeye (BPL) to Market Perform; Distribution Secure, But Growth Unlikely Near Term
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Price: $67.60 +2.35%
Rating Summary:
3 Buy, 7 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Rating Summary:
3 Buy, 7 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Trade BPL Now!
Wells Fargo downgraded Buckeye (NYSE: BPL) from Outperform to Market Perform with a price target range of $52-$57 (from $62-$66).
Analyst, Michael Blum, said, "Risk/reward appears balanced at the current valuation. We see several potential positive and negative catalysts which could determine the trajectory of unit price performance. We are lowering our valuation range to reflect Buckeye’s higher risk profile (higher leverage and lower distribution coverage). BPL currently yields 7.8% and trades at a 2013E EV/EBITDA multiple of 12.8x. This compares to a median yield of 7.6% and 2013E EV/EBITDA multiple of 13.6x for a "low growth" MLP subgroup (e.g. Boardwalk Pipeline Partners (NYSE: BWP), Enbridge Energy (NYSE: EEP), and NuStar Energy (NYSE: NS))."
For an analyst ratings summary and ratings history on Buckeye click here. For more ratings news on Buckeye click here.
Shares of Buckeye closed at $53.27 yesterday, with a 52 week range of $44.55-$68.45.
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Analyst, Michael Blum, said, "Risk/reward appears balanced at the current valuation. We see several potential positive and negative catalysts which could determine the trajectory of unit price performance. We are lowering our valuation range to reflect Buckeye’s higher risk profile (higher leverage and lower distribution coverage). BPL currently yields 7.8% and trades at a 2013E EV/EBITDA multiple of 12.8x. This compares to a median yield of 7.6% and 2013E EV/EBITDA multiple of 13.6x for a "low growth" MLP subgroup (e.g. Boardwalk Pipeline Partners (NYSE: BWP), Enbridge Energy (NYSE: EEP), and NuStar Energy (NYSE: NS))."
For an analyst ratings summary and ratings history on Buckeye click here. For more ratings news on Buckeye click here.
Shares of Buckeye closed at $53.27 yesterday, with a 52 week range of $44.55-$68.45.
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