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Wunderlich Securities Upgrades Buckeye GP Holdings (BGH) to Buy

October 26, 2009 8:02 AM EDT
BGH Hot Sheet
Rating Summary:
    0 Buy, 1 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 19 | Down: 18 | New: 27
Wunderlich Securities upgrades Buckeye GP Holdings (NYSE: BGH) from Hold to Buy. Price target increased from $25 to $30.50.

Wunderlich analyst says, "We are upgrading Buckeye, which owns the general partner of, limited partner units of, and incentive distribution rights in, Buckeye Partners, L.P. (NYSE: BPL), a diversified midstream MLP with core legacy operations in refined product pipelines. We are raising our target to $30.50, primarily on higher distribution per unit estimates in 2010 ($1.72 from after building in a $100 equity offering at the underlying limited partnership in 1Q10...After modeling in a equity offering in based on an expectation for heightened acquisition and/or drop-down activity, we are boosting our 2010 distribution estimate at BGH to $1.72 from $1.66. We could be wrong if no deal materializes and/or if it is smaller or later."

To see more analyst ratings on BGH Click Here.

Buckeye GP Holdings L.P., through its general partner interests in Buckeye Partners, L.P., engages in the transportation, terminalling, and storage of refined petroleum products for integrated oil companies, refined products marketing companies, and end users of petroleum products in the United States.

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