UPDATE: Citi Upgrades Sunoco (SUN) to Buy

Citi analyst George Wang upgraded Sunoco (NYSE: SUN) from Neutral to Buy with a price target of $49.00.

The analyst comments "We are upgrading shares of SUN back to Buy from Neutral. Recall we downgraded SUN to Neutral less than one month ago on February 1st on the key thesis that ‘a lot was priced in.’ Well, things done changed – and quickly. Since our downgrade, SUN has underperformed industry competitors by ~5% relative, and has also been the worst performer out of our coverage universe, down ~13%. We believe the company’s most recent earnings release and call were incrementally positive and our target price remains the Street High. While we generally don’t ‘whip’ ratings around, the relative underperformance – and what we continue to view as continued solid underlying fundamentals – lead us to once again become more positive. It is our view that volatile times call for nimble calls. We maintain our Street-high target price of ~$49 and estimate a total 12-month return of ~30%."

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 $41.66 yesterday.

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