UPDATE: Mizuho Securities Downgrades Sunoco (SUN) to Neutral

February 19, 2021 4:42 AM EST
Get Alerts SUN Hot Sheet
Price: $33.59 -0.39%

Rating Summary:
    6 Buy, 15 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 24 | New: 32
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(Updated - February 19, 2021 4:59 AM EST)

Mizuho Securities analyst Gabriel Moreen downgraded Sunoco (NYSE: SUN) from Buy to Neutral with a price target of $33.00.

The analyst comments "We think the Street was more or less expecting margin compression in 4Q given recent commodity inflation that has spilled into 2021. In that context, 4Q's miss was understandable and does not diminish all of SUN's 2020 success (incremental cost savings, higher CPG floor, value proposition should motor fuel consumption enter secular decline). SUN's valuation has deservedly rerated relative to our coverage; however, we believe near-term upside could be limited given tighter commodity supply and in spite of demand tailwinds from the nationwide COVID-19 vaccine roll-out. We continue to acknowledge the merits of SUN's fungible model and peer-leading fuel distribution position, but believe the bulk of SUN's re-rating has been achieved. Downgrade to Neutral."

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 $30.58 yesterday.


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