Barclays Reiterates an 'Overweight' on Sunoco (SUN); Adjusting Price Target on SunCoke's Soft 2012 Outlook; Valuation Still Attractive

Barclays reiterates an 'Overweight' on Sunoco (NYSE: SUN) price target lowered from $48 to $46.

Barclays analyst says, "SunCoke Energy (NYSE: SXC) announced its 2012 guidance on production and earnings, which came in below our previous expectation as we slightly overestimated the coke production ramp up at the Middletown cokemaking facility and underestimated the continuing cost pressures and geological issues in the coal operation. With SUN controlling 81% of SXC's shares outstanding, SXC's lower earnings potential will directly affect SUN's bottom line. As a result of lower coke earnings expectation, we revise our price target on SUN to $46/share from $48/share based on the low end of our sum-of-the-parts analysis. Despite the fine-tuning, we continue to think that SUN's sum-of-the-parts exceeds its current market valuation and re-iterate our Overweight on the stock."

For an analyst ratings summary and ratings history on Sunoco click here. For more ratings news on Sunoco click here.

Shares of Sunoco closed at $38.45 yesterday.

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