Market Overview

UPDATE: Citigroup Upgrades Questar Corporation to Buy on Southern Trails Conversion Outlook

Related STR
Questar Corp. Executive Vice President Allan Bradley to Retire; Micheal Dunn Named as His Replacement
Top 4 NYSE Stocks In The Gas Utilities Industry With The Highest Profit Margin
The All-Aristocrat Team: 35 Income Generating Dividend Machines (Part 4) (Seeking Alpha)

Citigroup upgraded Questar Corporation (NYSE: STR) from Neutral to Buy and raised the price target from $21.75 to $25.00.

Citigroup noted, "[W]e believe a Southern Trails conversion will eventually come to fruition. We believe the stock could be worth anywhere from $24 - $31p/s, depending on the path STR chooses. … We estimate STR could generate 1) ~$10p/s of value by forming an MLP around the conversion; 2) ~$6p/s of value by converting Southern Trails without forming an MLP; and 3) ~$2p/s of value via an outright sale of the pipeline. We believe STR could also consider a “like-in-kind” exchange."

Questar Corporation closed at $22.37 on Tuesday.

Latest Ratings for STR

Apr 2014Bank of AmericaInitiates Coverage onUnderperform
Apr 2014JefferiesInitiates Coverage onHold
Nov 2013Maxim GroupInitiates Coverage onBuy

View More Analyst Ratings for STR
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings


Related Articles (STR)

Around the Web, We're Loving...

Get Benzinga's Newsletters