UPDATE: Citigroup Raises PT on Sunoco Logistics Partners to $42

Citigroup has published a research report on Sunoco Logistics Partners

and has raised the price target from $41 to $42 after the company reported another strong quarter. In the report, Citigroup writers, "SXL made record investments in 2011 of $494 million on acquisitions and $171 million on internal expansion projects, while mgmt has guided 2012 growth capex to $300 mil. Projects include progressing with Mariner West as well as continuing discussions on Mariner East and more recently on an expansion project to transport refined products from Chicago to the PA market as local refinery closures loom. Other areas of growth continue to be in butane blending, increasing tankage at the Nederland terminal, and expansion of the W. Texas Gulf pipeline slated to be online in 1Q13. These projects along with the partnership's very healthy coverage ratio lead us to believe distribution growth at SXL is likely to outperform mgmt's current guidance of 7%." Citigroup maintains its Buy rating on Sunoco Logistics Partners, which is currently trading up $0.27 from yesterday's $36.77 closing price.