Barclays Maintains an 'Equalweight' on Sunoco Logistics Partners (SXL); 3Q Beat Driven by Crude Oil Strength, Recent Acquisitions Support 7% Growth

Barclays maintains an 'Equalweight' on Sunoco Logistics Partners (NYSE: SXL) price target boosted to $99.00.

Barclays analyst says, "Not a surprise, SXL raises distribution growth guidance from 6 to 7%. Supported by growing US onshore crude production, a shortage of takeaway capacity and 60% YoY increase in 2011 expansion capex to approximately $650MM, SXL guided to 7% distribution growth in 2012, up from previous 6% guidance. We are increasing our price target from $91 to $99. Our $99 PT is based on a 12-month distribution run rate of $5.32 (previously $5.18) on pre-unit split basis and 5.4% target yield (previously 5.7%) due to higher-than-expected distribution growth and coverage...Our updated 2011/2012 distribution growth (declared), coverage and expansion capex estimates are 6.6%/7.3%, 1.8x/1.5x, $654MM/$260MM, respectively."

For more ratings news on Sunoco Logistics Partners click here and for the rating history of Sunoco Logistics Partners click here.

Shares of Sunoco Logistics Partners closed at $95.96 yesterday.

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