MLV Upgrades Genesis Energy Shares To Buy, Sees 29% Upside For The Stock
In a research report issued today, MLV analyst Daniel Schenk reiterated a Buy rating on Genesis Energy (NYSE:GEL) with a price target of $60, which represents a potential upside of 29% from where the stock is currently trading.
Schenk noted, “As valuations across the energy sector have reached more attractive levels in recent weeks, GEL saw its share of selling pressure with units falling ~13% over the past 3 months. We view the recent pull-back as overdone creating a compelling buying opportunity as the market is expecting earnings risk that we do not expect to materialize. We believe GEL is well insulated from the current lower strip and do not expect much in the way of future under-performance at current levels. GEL’s competitively positioned portfolio, strong distribution growth potential (+11% annually), and solid coverage have led us to upgrade the partnership to a Buy.”