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UPDATE: Goldman Sachs Initiates Buy, $26 PT on Northern Tier Energy on Potential Distributions

Goldman Sachs initiated its coverage on Northern Tier Energy (NYSE: NTI) with a Buy rating and a price target of $26 a share.

Goldman Sachs commented, "Like the rest of our MidCon refiners, NTI's earnings are highly exposed to changes in refining margins, with discounted MidCon crude oil prices generating strong earnings and cash flow. Organic growth opportunities are limited and our positive view is not predicated on meaningful growth projects. Rather, we believe investors are under-estimating NTI's near- and long-term earnings and distribution potential relative to our constructive outlook for MidCon refining margins and, in particular, “north of Cushing” crude oil discounts. We believe distribution announcements and ongoing healthy MidCon margins/crude oil discounts will drive units higher."

Northern Tier Energy closed at $18.30 on Friday.

Latest Ratings for NTI

DateFirmActionFromTo
Aug 2014BarclaysMaintainsOverweight
Jul 2014JP MorganMaintainsNeutral
May 2014JP MorganMaintainsNeutral

View More Analyst Ratings for NTI
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Initiation Pre-Market Outlook Analyst Ratings

 

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