UPDATE: Bank of America Initiates Northern Tier Energy at Buy with $22 PO on Yield
Bank of America initiated its coverage on Northern Tier Energy (NYSE: NTI) with a Buy rating and a price objective of $22 a share.
Bank of America noted, "NTI is the first refiner structured as a variable distribution MLP – a refiner that will distribute 100% of available cashflow to unit holders, enabling investors full leverage to seasonal margin fluctuations and crude differentials. While unit price valuation and volatility likely attract a different dynamic than ‘C' corp refining peers, we expect yield to help provide support during periods of seasonal weakness and at current levels of 13.5% based on 2013 distributable cash flow, looks attractive to us."
Northern Tier Energy closed at $18.30 on Friday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.