UPDATE: Credit Suisse Raises PT to $38 NuStar GP Holdings; Distribution Acceleration
Credit Suisse increases its price target from $35 to $38 on Neutral-rated NuStar GP Holdings (NYSE: NSH) on anticipated acceleration to distribution growth.
Credit Suisse says, "In our view, NSH current yield of 6.1% is a fair reflection of the stock's mid-single digit distribution growth potential over the next few years. As a levered play on NuStar Energy (NS), NuStar GP's (NSH) growth has slowed in recent years owing to the deceleration in distribution growth at NS. NSH should benefit from NS' expanding growth capex budget, however we do not expect NS' distribution growth to accelerate until 2013. Until NS' growth visibility improves we believe NSH unitholders should expect mid-single digit distribution growth. "
NSH closed at $33.75 on Wednesday.
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