UPDATE: Goldman Sachs Initiates Alon USA Partners at Neutral on Valuation, Margin Exposure

Goldman Sachs initiated coverage on Alon USA Partners ALDW with a Neutral rating and a $31 price target. Goldman Sachs noted, "The key investment debate beyond refining margins, in our view, is whether investors will give Alon Partners, and variable distribution refining MLP peer Northern Tier, credit as “yield vehicles” and not merely credit for their tax-advantaged structure. Another investment issue is that Alon's earnings, like those of MidCon peers, are highly exposed to changes in refining margins and in particular MidCon crude oil discounts. Discounted MidCon crude oil prices have generated strong earnings and cash flow in recent years, but investors question sustainability and how much is already reflected in valuation." Alon USA Partners closed at $24.13 on Friday.