UPDATE: Credit Suisse Downgrades Magellan Midstream Partners to Neutral on Valuation

Credit Suisse lowered its rating on Magellan Midstream Partners MMP from Outperform to Neutral but raised its price target from $44.50 to $46. Credit Suisse noted, "We are downgrading MMP to Market Perform on valuation. MMP has gained 11% over the last three months and over 23% over the last six and appears fairly valued on a yield spread basis. … We continue to believe that MMP should trade at a healthy 150 bp premium to the AMZX given its above-sector distribution growth, predictable cash flows, absence of IDR burden, low risk business model, and strong balance sheet. However, we are modeling NTM total return potential of 6%-18% which is not quite enough to justify an Outperform rating, thus our downgrade to Neutral." Magellan Midstream Partners closed at $43.43 on Wednesday.