UBS Reiterates Buy on Buckeye Partners (BPL) Following 4Q Report

UBS reiterated a Buy rating and $86.00 price target on Buckeye Partners (NYSE: BPL) following the company's 4Q earnings report. BPL reported adjusted EBITDA of $255.1mm, ~3% below consensus of $262.6mm.

Analyst Shneur Gershuni commented, "Overall EBITDA performance for 4Q was slightly above UBSe and results could have been stronger absent Hurricane Matthew impacts. In our view, post the VTTI investment the stock had underperformed at times in part due to the increased complexity from a modeling standpoint. While incremental details were provided, it looks like investors will need to wait for 1Q17 for more colour. Management highlighted that it continues to see investment opportunities and would like to diversify its geographic footprint. Counterparty risk at the splitter was raised; however, given that the counterparty owns a stake in it, risk should be somewhat muted. We expect that with incremental clarity on VTTI Buckeye equity will react better."

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

Shares of Buckeye closed at $72.11 yesterday.

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