UPDATE: Citigroup Upgrades Questar Corporation to Buy on Southern Trails Conversion Outlook
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
|Dec 2015||UBS||Initiates Coverage on||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.