UPDATE: JPMorgan Upgrades Magellan Midstream Partners (MMP) to Overweight

March 25, 2020 4:54 AM EDT
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Price: $46.60 --0%

Rating Summary:
    15 Buy, 16 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 13 | New: 23
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(Updated - March 25, 2020 5:00 AM EDT)

(updating comment)

JPMorgan analyst Jeremy Tonet upgraded Magellan Midstream Partners (NYSE: MMP) from Neutral to Overweight with a price target of $59.00 (from $75.00).

The analyst comments "Magellan’s refined product pipeline network serves favorable demographics across the southern US, while the partnership’s crude oil platform capitalizes on West Texas takeaway, Houston distribution, and growing export needs. Moreover, stable, fee-based revenue drives around 85% of partnership operating margin. Due to acquiring the GP in 2009, MMP enjoys one of the lowest costs of capital in the MLP space, allowing the partnership to outbid competitors for choice assets, while still achieving the desired accretion. We see MMP’s peer-leading stable liquids logistics businesses and best-in-class corporate governance as serving the partnership well in this energy downturn and believe recent price declines offer an attractive entry opportunity."

For an analyst ratings summary and ratings history on Magellan Midstream Partners click here. For more ratings news on Magellan Midstream Partners click here.

Shares of Magellan Midstream Partners closed at $29.46 yesterday.


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