Barclays Maintains an 'Overweight' on Oiltanking Partners (OILT); New Midstream Crude Oil Project Supports Growth Visibility
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Price: $32.78 -0.03%
Rating Summary:
5 Buy, 4 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
5 Buy, 4 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Barclays maintains an 'Overweight' on Oiltanking Partners (NYSE: OILT) price target of $28.00.
Barclays analyst says, "Pipe and storage expansion highlights solid organic growth prospects from favorable crude backdrop. In its first quarter post IPO, OILT delivered solid 3Q results and increased capex with a new $80mm project to expand crude oil pipeline and storage capacity in the Houston Ship Channel. The project provides additional growth visibility and supports our view that OILT growth initially will be organic-driven. We maintain our $28 price target, as the new project will not generate cash flows until 2013. Our $28 PT is based on a 12-month distribution run rate of $1.46 and a 5.3% target yield. However, we are modestly increasing our distribution estimates. In our view, OILT is a defensive, relatively high-growth MLP with 7.2% distribution CAGR."
"We are slightly increasing our 2012/2013 distribution estimates from $1.44/$1.55 to $1.45/$1.56, as our forecast already included a capex increase. Importantly, OILT expects to announce additional organic projects at its Houston terminal."
For an analyst ratings summary and ratings history on Oiltanking Partners click here. For more ratings news on Oiltanking Partners click here.
Shares of Oiltanking Partners closed at $25.33 yesterday.
Barclays analyst says, "Pipe and storage expansion highlights solid organic growth prospects from favorable crude backdrop. In its first quarter post IPO, OILT delivered solid 3Q results and increased capex with a new $80mm project to expand crude oil pipeline and storage capacity in the Houston Ship Channel. The project provides additional growth visibility and supports our view that OILT growth initially will be organic-driven. We maintain our $28 price target, as the new project will not generate cash flows until 2013. Our $28 PT is based on a 12-month distribution run rate of $1.46 and a 5.3% target yield. However, we are modestly increasing our distribution estimates. In our view, OILT is a defensive, relatively high-growth MLP with 7.2% distribution CAGR."
"We are slightly increasing our 2012/2013 distribution estimates from $1.44/$1.55 to $1.45/$1.56, as our forecast already included a capex increase. Importantly, OILT expects to announce additional organic projects at its Houston terminal."
For an analyst ratings summary and ratings history on Oiltanking Partners click here. For more ratings news on Oiltanking Partners click here.
Shares of Oiltanking Partners closed at $25.33 yesterday.
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