Barclays Maintains an 'Overweight' on Sunoco (SUN); Sale of Phenol Business
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Price: $74.65 -1.1%
Rating Summary:
11 Buy, 13 Hold, 2 Sell
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Today's Overall Ratings:
Up: 6 | Down: 5 | New: 3
Rating Summary:
11 Buy, 13 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 3
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Barclays maintains an 'Overweight' on Sunoco (NYSE: SUN) price target of $54.00.
Barclays analyst says, "Yesterday after the market close (8/16/11), Sunoco announced the sale of its Haverhill Ohio Phenol manufacturing plant to a privately held company...We think the announcement will have a neutral to slight negative impact on the shares. On the positive side, the sale furthers management's goal of focusing on the company's core businesses, i.e., retail and logistics. Offsetting this is the $56.5 mm sale price. Although the price is only slightly below our $89-$91 mm assumed price, it may cause some investors to reassess the range of values assigned to SUN's other assets. That said, we continue to believe that our estimates are reasonably conservative, and reaffirm our $54 price target....We revise our 2012 EPS estimates to $2.85 from $2.95 and maintain our 2011 EPS estimate at $0.40 per share, reflecting the asset sale."
"We maintain our OW rating in light of its cheap valuation based on the sum-of-the-parts analysis."
For more ratings news on Sunoco click here and for the rating history of Sunoco click here.
Shares of Sunoco closed at $35.30 yesterday.
Barclays analyst says, "Yesterday after the market close (8/16/11), Sunoco announced the sale of its Haverhill Ohio Phenol manufacturing plant to a privately held company...We think the announcement will have a neutral to slight negative impact on the shares. On the positive side, the sale furthers management's goal of focusing on the company's core businesses, i.e., retail and logistics. Offsetting this is the $56.5 mm sale price. Although the price is only slightly below our $89-$91 mm assumed price, it may cause some investors to reassess the range of values assigned to SUN's other assets. That said, we continue to believe that our estimates are reasonably conservative, and reaffirm our $54 price target....We revise our 2012 EPS estimates to $2.85 from $2.95 and maintain our 2011 EPS estimate at $0.40 per share, reflecting the asset sale."
"We maintain our OW rating in light of its cheap valuation based on the sum-of-the-parts analysis."
For more ratings news on Sunoco click here and for the rating history of Sunoco click here.
Shares of Sunoco closed at $35.30 yesterday.
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