UPDATE: Bank of America Upgrades Sunoco Logistics Partners
According to a research report published this morning, Bank of America has upgraded Sunoco Logistics Partners (NYSE: SXL) from Underperform to Neutral.
In the report, Bank of America said, "We upgrade SXL to Neutral considering 1) SXL's recent unit price pullback (SXL has declined 15.3% since the end of April compared with a 5.7% decline of the Alerian MLP Index (AMZ)), 2) wide Brent/WTI crude oil spreads (~$16/bbl currently), which benefits SXL's margins, 3) robust distribution coverage ratios (over 2x in 1Q12), which may allow for an acceleration of distribution growth, 4) SXL's solid balance sheet with debt/EBITDA of around 3x, 5) healthy butane blending margins, and 6) SXL's attractive organic growth projects."
Bank of America maintains its $37 PO on SXL, which closed yesterday at $34.48.
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