JP Morgan Initates NuStar Energy With a Neutral Rating (NS)
JP Morgan analysts Xin Liu and Alistair Meadows have initiated coverage of NuStar Energy (NYSE: NS). NuStar is engaged in transporting and storing petroleum and petroleum products, and asphalt and fuels marketing.
84% of 2009 EBITDA was generated from its stable transportation and storage segments. NS' fuel and asphalt marketing is volatile and exposed to commodity prices.
JP Morgan thinks that asphalt demand will remain weak throughout the year, and will not provide upside to NS cash flow in the short-term.
JP Morgan thinks NuStar's current price is fair, hence the Neutral rating.
NuStar is trading at $56.53, and its price target is $56.00.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.