UPDATE: Bank of America Reiterates MPLX at Buy on Peer Upside
Bank of America reiterated its Buy rating and $32 price objective on MLPX (NYSE: MPLX) as it sees shares as discounted given leadership in growth to its peer group.
Bank of America noted, "MPLX trades at a discount to some peers on an adj. EV/EBITDA basis, which we see as unjustified. given its potential to provide peer-leading distribution growth through drop-downs from its general partner (GP), MPC, and the low-business-risk profile of its asset base. Incorporating approximately $900mn in drop-downs through 2014, we forecast MPLX should grow distributions at a 25% CAGR through 2014E, while maintaining DCF coverage of at least 1.1x."
MPLX closed at $26.97 on Friday.
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