Benchmark Upgrades Sunoco (SUN) to Hold Following Corporate Restructuring
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Price: $56.30 +0.72%
Rating Summary:
5 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 13
Rating Summary:
5 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 13
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Benchmark upgraded shares of Sunoco (NYSE: SUN) to a Hold rating following its recent exit from its refining business and restructuring plans.
Under the firms going concern scenario, Benchmark values shares of SUN at roughly $41.60, post restructuring, and due to the company's large sum of cash investors should anticipate substantial buybacks.
An analyst at Benchmark comments, "The combination of management’s “body language” and prior comments regarding the strength and growth potential of the retail and logistics businesses leads us to this conclusion, notwithstanding our skepticism specifically regarding future growth potential. For this reason, we are inclined to weight the going concern scenario somewhat more heavily in our assessment of the current value of Sunoco shares."
The firm currently estimates EPS for 2011 and 2012 of ($0.82) and $1.20.
For more ratings news on Sunoco click here and for the rating history of Sunoco click here.
Shares of Sunoco closed at $38.03 yesterday.
Under the firms going concern scenario, Benchmark values shares of SUN at roughly $41.60, post restructuring, and due to the company's large sum of cash investors should anticipate substantial buybacks.
An analyst at Benchmark comments, "The combination of management’s “body language” and prior comments regarding the strength and growth potential of the retail and logistics businesses leads us to this conclusion, notwithstanding our skepticism specifically regarding future growth potential. For this reason, we are inclined to weight the going concern scenario somewhat more heavily in our assessment of the current value of Sunoco shares."
The firm currently estimates EPS for 2011 and 2012 of ($0.82) and $1.20.
For more ratings news on Sunoco click here and for the rating history of Sunoco click here.
Shares of Sunoco closed at $38.03 yesterday.
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