Wells Fargo Upgrades Global Partners, L.P. (GLP) to Market Perform; Valuation Call

Wells Fargo upgraded Global Partners, L.P. (NYSE: GLP) from Underperform to Market Perform with a price target range of $17-$19 from $18-$20.

Wells analyst says, "Over the past month, GLP's unit price has dropped 16% compared to a nearly 1% increase for the Wells Fargo MLP Index and the S&P 500 Index, respectively. With that said, operating conditions may remain challenging over at least the next several quarters, in our opinion, due mainly to lack of favorable purchasing opportunities and volatile commodity prices which could result in demand destruction and an increase in working capital cost. As a result, visibility is limited regarding distribution growth, in our opinion, while the risk profile for GLP is above others in the small-cap pipeline MLP peer group. To reflect the continued uncertainty surrounding GLP's operating conditions, in our opinion, were are now assuming no distribution growth for the partnership over the next five years."

For more ratings news on Global Partners, L.P. click here and for the rating history of Global Partners, L.P. click here.

Shares of Global Partners, L.P. closed at $16.70 yesterday.

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