UPDATE: JP Morgan Initiates MPLX LP at Overweight on Upside Potential
JP Morgan initiated coverage on MPLX LP (NYSE: MPLX) with an Overweight rating and a $34 price target.
JP Morgan commented, "With a deep drop-down inventory, complemented by organic growth opportunities, we believe Marathon Petroleum (MPC) has created a best in class growth MLP with MPLX. Moreover, long-term contracts with substantial minimum volume commitments and no direct commodity price exposure underpin ~73% of MPLX 2013e revenues. Although MPLX's appreciation since the IPO lowers the upfront yield, we believe that MPLX's substantial growth prospects offer attractive total return potential for long-term investors."
MPLX LP closed at $29.34 on Thursday.
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