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
|Dec 2015||RBC Capital||Downgrades||Outperform||Sector Perform|
|Dec 2015||JP Morgan||Upgrades||Underweight||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.