Benchmark Sum-of-Parts Valuation on Susser (SUSS) Reveals $47 Share Price
Tweet
Share
E-mailGet Alerts SUSS Hot Sheet
Price: $82.46 --0%
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Benchmark reiterated a Buy rating on Susser Holdings Corporation (NASDAQ: SUSS) and increased its price target on the Texas-based convenience store holding company to $47.00 (from $42.00).
Susser Holdings is majority owner of Susser Petroleum Partners (NYSE: SUSP) s Houston-based master limited partnership formed in September. Analysts at Benchmark believe the spin off of Susser Petroleum Partners adds value to shareholders of SUSS.
"We increased our price target for Susser Holdings to $47, from $42, using a sum of the parts analysis after the IPO of Susser Petroleum Partners," said analyst Ronald Bookbinder.
"Backing out SUSP EBITDA of approximately $40 million from the consolidated Susser Holding income statement, we expect the convenience store business to generate $125 million in FY2012 EBITDA, which we assign a 7 multiple to equate to a value about $36.50 per share. On the approximate $40 million of EBITDA for SUSP, only half belongs to shareholders of SUSS. Assigning an 11.5 multiple to SUSS shareholders portion of the MLP, SUSP, gives an additional value of $10.50," concluded Bookbinder.
For an analyst ratings summary and ratings history on Susser Holdings Corporation click here. For more ratings news on Susser Holdings Corporation click here.
Shares of Susser Holdings Corporation closed at $33.08 yesterday.
Susser Holdings is majority owner of Susser Petroleum Partners (NYSE: SUSP) s Houston-based master limited partnership formed in September. Analysts at Benchmark believe the spin off of Susser Petroleum Partners adds value to shareholders of SUSS.
"We increased our price target for Susser Holdings to $47, from $42, using a sum of the parts analysis after the IPO of Susser Petroleum Partners," said analyst Ronald Bookbinder.
"Backing out SUSP EBITDA of approximately $40 million from the consolidated Susser Holding income statement, we expect the convenience store business to generate $125 million in FY2012 EBITDA, which we assign a 7 multiple to equate to a value about $36.50 per share. On the approximate $40 million of EBITDA for SUSP, only half belongs to shareholders of SUSS. Assigning an 11.5 multiple to SUSS shareholders portion of the MLP, SUSP, gives an additional value of $10.50," concluded Bookbinder.
For an analyst ratings summary and ratings history on Susser Holdings Corporation click here. For more ratings news on Susser Holdings Corporation click here.
Shares of Susser Holdings Corporation closed at $33.08 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fiserv (FISV) PT Lowered to $60 at Freedom Broker
- Solar Industries (SOIL:IN) PT Raised to INR23,500 at ICICI Securities
- Zedcor Inc (ZDC:CN) PT Raised to Cdn$7.75 at Desjardins
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT ChangeSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
