Wells Fargo Starts Tesoro Logistics (TLLP) at Outperform; Visible Growth Tied To Organic Initiatives And Drop-Downs
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Price: $52.13 --0%
Rating Summary:
11 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
Rating Summary:
11 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
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Wells Fargo initiates coverage on Tesoro Logistics (NYSE: TLLP) with an Outperform. Valuation range $26-28.
Wells analyst said, "TLLP is likely to trade at a premium to other small-cap pipeline MLPs, in our view, given the following factors: (1) it offers investors an attractive way to participate in the anticipated growth in Bakken Shale infrastructure, (2) the partnership's aboveaverage multi-year growth outlook from potential drop-down opportunities and organic growth initiatives, and (3) TLLP's low-risk business model. We forecast a five-year distribution CAGR of 9.1%, assuming average annual (1) acquisitions of $100 million and (2) growth capex of $25 million. At least 80% of TLLP's distribution is expected to be tax deferred."
For more ratings news on Tesoro Logistics click here and for the rating history of Tesoro Logistics click here.
Shares of Tesoro Logistics closed at $24.49 yesterday.
Wells analyst said, "TLLP is likely to trade at a premium to other small-cap pipeline MLPs, in our view, given the following factors: (1) it offers investors an attractive way to participate in the anticipated growth in Bakken Shale infrastructure, (2) the partnership's aboveaverage multi-year growth outlook from potential drop-down opportunities and organic growth initiatives, and (3) TLLP's low-risk business model. We forecast a five-year distribution CAGR of 9.1%, assuming average annual (1) acquisitions of $100 million and (2) growth capex of $25 million. At least 80% of TLLP's distribution is expected to be tax deferred."
For more ratings news on Tesoro Logistics click here and for the rating history of Tesoro Logistics click here.
Shares of Tesoro Logistics closed at $24.49 yesterday.
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