In a report released today, Christine Cho, CFA from Barclays maintained a Buy rating on Buckeye Partners (BPL), with a price target of $38. The company’s shares opened today at $32.23.
Cho, CFA wrote:
“We think the uplift could translate to an incremental +7- 11% to our current 2020 EBITDA estimate and +9-15% to DCF. At BPL’s current 2020 EV/EBITDA multiple of 8.7x, this would imply up to +15% upside potential to its unit price. We note that our exercise only looks at potential benefit from incremental storage of HSFO. We have not included any uplift from other product dislocations (e.g. gasoline) nor does the analysis account for any significant increase in renegotiated short-term storage rates in the event of an improved forward structure. Investment thesis.”
According to TipRanks.com, CFA is a 2-star analyst with an average return of 0.4% and a 50.0% success rate. CFA covers the Basic Materials sector, focusing on stocks such as Dcp Midstream Partners Lp, Andeavor Logistics LP, and Targa Resources Corp.
The word on The Street in general, suggests a Hold analyst consensus rating for Buckeye Partners with a $33.40 average price target.
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The company has a one-year high of $49.20 and a one-year low of $25.71. Currently, Buckeye Partners has an average volume of 1.21M.
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Buckeye Partners LP is a holding company, which engages in the provision of midstream energy logistics services. It owns and operates petroleum products common carrier pipeline networks providing refiners, wholesalers, marketers, airlines, railroads and other commercial end-users with all-weather transportation of refined petroleum products .It operates its business through the following segments: Domestic Pipelines and Terminals; Global Marine Terminals; and Merchant Services. The Domestic Pipelines and Terminals segment transports liquid petroleum products from refineries, connecting pipelines, vessels, and bulk and marine terminals. The Global Marine Terminals segment provides marine accessible bulk storage and blending services; and rail and truck rack loading or unloading along with petroleum processing services. The Merchant Services segment is a wholesale distributor of refined petroleum products in the continental United States and in the Caribbean. The company was founded in December 1986 and is headquartered in Houston, TX.
