Barclays Maintains an 'Equalweight' on Holly Energy Partners (HEP); Dropdown Supports Distribution Growth
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Price: $20.45 --0%
Rating Summary:
3 Buy, 4 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
3 Buy, 4 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Equalweight' on Holly Energy Partners (NYSE: HEP) price target raised $2 to $59.
Barclays analyst says, "Pending asset dropdown provides growth visibility. We estimate the $340mm drop of KS and WY assets in November should be approximately 5% accretive. The acquisition also expands HEP's geographic footprint and provides future bolt-on growth opportunities in the Rockies and Mid-Continent. We are a little less enthused about the likely 1H12 UNEV pipeline due to higher construction costs, but our 5% distribution growth estimate incorporates the higher UNEV price tag. Our new price target is based on a 12-month distribution run rate of $3.66 (previously $3.62) and 6.25% target yield (previously 6.35%) due to enhanced growth visibility from the KS/WY dropdown."
For more ratings news on Holly Energy Partners click here and for the rating history of Holly Energy Partners click here.
Shares of Holly Energy Partners closed at $56.61 yesterday.
Barclays analyst says, "Pending asset dropdown provides growth visibility. We estimate the $340mm drop of KS and WY assets in November should be approximately 5% accretive. The acquisition also expands HEP's geographic footprint and provides future bolt-on growth opportunities in the Rockies and Mid-Continent. We are a little less enthused about the likely 1H12 UNEV pipeline due to higher construction costs, but our 5% distribution growth estimate incorporates the higher UNEV price tag. Our new price target is based on a 12-month distribution run rate of $3.66 (previously $3.62) and 6.25% target yield (previously 6.35%) due to enhanced growth visibility from the KS/WY dropdown."
For more ratings news on Holly Energy Partners click here and for the rating history of Holly Energy Partners click here.
Shares of Holly Energy Partners closed at $56.61 yesterday.
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