UPDATE: Credit Suisse Downgrades NuStar Energy to Underperform, Lowers PT
In a report published Friday, Credit Suisse downgraded its rating on NuStar Energy LP (NYSE: NS) from Outperform to Underperform, and lowered its price target from $64.00 to $44.00.
Credit Suisse noted, “The deterioration of NS' asphalt and fuels marketing segment continues to surprise to the downside and more than offset the growth in its fee-based storage and transportation segments. As a result, we do not believe NS will be able to cover its distribution in 2013 and beyond. Combined with an over-levered balance sheet, we believe the sustainability of NS' distribution is now at risk. Our $44 target price (from $64) reflects this risk and provides for a -3% total return over the next twelve months.”
NuStar Energy closed on Thursday at $49.75.
Latest Ratings for NS
|Jun 2015||Bank of America||Upgrades||Neutral||Buy|
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