Valero Energy Partners LP Receives New Coverage from Analysts at Credit Suisse (VLP)
Research analysts at Credit Suisse initiated coverage on shares of Valero Energy Partners LP (NYSE:VLP) in a report released on Monday, TheFlyOnTheWall.com reports. The firm set an “outperform” rating and a $38.00 price target on the stock. Credit Suisse’s target price points to a potential upside of 14.98% from the company’s current price.
The analysts wrote, “Based on our expectations, VLO’s extensive portfolio of transportation and logistics assets translates to ~$600mm in annual EBITDA. VLP is set to be the direct beneficiary of these assets that closely complement its existing base business, which currently generates ~$55-60mm EBITDA,” the report said. According to the report, the $38.00 price target is derived by applying a combination of a three-stage distribution discount model (DDM) and target yield, giving us a valuation range of $35-$42. The price target also implies a yield of 2.76 percent in a 4Q14 (12 months out), based on a forecast annualized distribution of $1.05 per unit and implies a 12-month total return potential of ~20 percent with bias to the upside, inline with the analysts Outperform-rated energy logistics MLPs. Some highlights from the report included: -”VLP priced its IPO at $23/unit at a yield of 3.70% (based on MQD), one of the lowest among MLPs.”-”VLP’s assets (at IPO) are critical to VLO’s refining operations, which support its Port Arthur, McKee, and Memphis refineries.”
Several other analysts have also recently commented on the stock. Analysts at Wells Fargo & Co. initiated coverage on shares of Valero Energy Partners LP in a research note to investors on Monday. They set an “outperform” rating on the stock. Analysts at RBC Capital initiated coverage on shares of Valero Energy Partners LP in a research note to investors on Monday. They set an “outperform” rating and a $40.00 price target on the stock. Five equities research analysts have rated the stock with a buy rating, The company has an average rating of “Buy” and a consensus price target of $38.67.
Shares of Valero Energy Partners LP (NYSE:VLP) traded up 1.38% on Monday, hitting $33.05. 487,971 shares of the company’s stock traded hands. Valero Energy Partners LP has a 1-year low of $28.60 and a 1-year high of $34.78. The stock has a 50-day moving average of $31.10 and a 200-day moving average of $31.10. The company’s market cap is $1.903 billion.
Valero Energy Partners LP was formed to own, operate, develop and acquire crude oil and refined petroleum products pipelines, terminals and other transportation and logistics assets.
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