UPDATE: Citigroup Raises PT to $26.50 on Rose Rock Midstream
Citigroup raises its price target on Rose Rock Midstream (NYSE: RRMS) up $3.50 to $26.50 as new investments drive improved outlook to company's growth.
Citigroup says, "Mgmt announced plans to invest an incremental ~$31 mil at a very attractive ~5.0x EBITDA multiple, which is also expected to support annual distribution growth in the range of 7% to 9% over the next three years. This is well above our previous distribution growth estimate of 5% that was supported by existing terminal expansions at Cushing. While the partnership is likely to access the equity markets in 2013 to help finance drop-downs from its general partner, RRMS has low leverage and $123 million of liquidity to finance its current capital needs."
RRMS closed at $24.20 a share yesterday.
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