UPDATE: Credit Suisse Downgrades Magellan Midstream Partners (MMP) to Neutral

(updating comment)

Credit Suisse analyst Spiro Dounis downgraded Magellan Midstream Partners (NYSE: MMP) from Outperform to Neutral with a price target of $49.00 (from $48.00).

The analyst comments "We downgrade MMP on valuation following a 30% rally in 4Q to date. At ~10.5x multiple on ’22 EBITDA, MMP now trades at a top-tier multiple within the group. Without growth, we struggle to identify reasons why the multiple would expand meaningfully from here. That said, we believe the premium multiple is warranted for all the reasons mentioned earlier. Our TP moves to $49 from $48 on our model roll-forward and is NAV-derived at a 9% cost of equity (unchanged). MMP’s 9% cost of equity is below the group average of 10% due to its earnings stability and investment grade balance sheet."

For an analyst ratings summary and ratings history on Magellan Midstream Partners click here. For more ratings news on Magellan Midstream Partners click here.

Shares of Magellan Midstream Partners closed at $45.59 yesterday.

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Travel Food Services (TRAVELFO:IN) PT Raised to INR1,600 at ICICI Securities