UPDATE: Wunderlich Reiterates Buy Rating, Raises PT on Tesoro Logistics

In a report published Wednesday, Wunderlich Securities reiterated its Buy rating on Tesoro Logistics LP TLLP, and raised its price target from $39.00 to $44.00. Wunderlich noted, “We are increasing our price target on Tesoro Logistics LP (TLLP) to $44/unit from $39/unit as we have updated our distribution discount model to reflect our higher forecasted long-term distribution outlook. Tesoro reported 2Q12 EBITDA of $16.7 million, which was above our estimate of $15.5 million and distributable cash flow of $16 million, which was above our estimate of $12.8 million. We believe Tesoro will be among the leaders in distribution growth over the next several years, including estimated 2013 distribution growth at 19%. In addition, the partnership should benefit from its organic growth capital spending and potential dropdown acquisitions.” Tesoro Logistics LP closed on Tuesday at $38.73.