Barclays Maintains an 'Overweight' on ONEOK Partners (OKS); Solid Quarter Driven by OKS Results
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Price: $51.07 --0%
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
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Barclays maintains an 'Overweight' on ONEOK Partners (NYSE: OKS) price target�raised from $75 to�$80.
Barclays analyst says, "Continues to Deliver Superior Risk Reward Ratio: With excess cash flow generation of ~$200 million annually through 2013, OKE is well positioned to capitalize on any acquisition opportunities, raise the dividend, increase its stake in OKS, and/or repurchase shares. The stock currently trades at a 3% yield and with a 50% expected increase in the dividend by 2014, we believe the floor on the stock price will continue to rise as it trades within a narrow range around its current yield." (Barclays raises FY11 EPS estimate from $3.03 to $3.19 and FY12 from $3.43 to $3.89)
"Near-Term Headwinds Persist for Energy Services While Distribution Impacted By Employee Benefits: As the largest number of employees sit at the Distribution segment, it will see the largest impact every time the stock reaches new one dollar highs. Assuming the company's continued success, we think a large portion of the $10 million tied to this expense for 2011 can be carried into 2012. Narrow spreads and low volatility will continue to impact Energy Services in the near-term, but this pressure should somewhat be alleviated between 2012 and 2015 as it realigns its cost structure."
For more ratings news on ONEOK Partners click here and for the rating history of ONEOK Partners click here.
Shares of ONEOK Partners closed at $50.38 yesterday.
Barclays analyst says, "Continues to Deliver Superior Risk Reward Ratio: With excess cash flow generation of ~$200 million annually through 2013, OKE is well positioned to capitalize on any acquisition opportunities, raise the dividend, increase its stake in OKS, and/or repurchase shares. The stock currently trades at a 3% yield and with a 50% expected increase in the dividend by 2014, we believe the floor on the stock price will continue to rise as it trades within a narrow range around its current yield." (Barclays raises FY11 EPS estimate from $3.03 to $3.19 and FY12 from $3.43 to $3.89)
"Near-Term Headwinds Persist for Energy Services While Distribution Impacted By Employee Benefits: As the largest number of employees sit at the Distribution segment, it will see the largest impact every time the stock reaches new one dollar highs. Assuming the company's continued success, we think a large portion of the $10 million tied to this expense for 2011 can be carried into 2012. Narrow spreads and low volatility will continue to impact Energy Services in the near-term, but this pressure should somewhat be alleviated between 2012 and 2015 as it realigns its cost structure."
For more ratings news on ONEOK Partners click here and for the rating history of ONEOK Partners click here.
Shares of ONEOK Partners closed at $50.38 yesterday.
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