UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on SemGroup Corp. on Continued Performance
In a report published Monday, Deutsche Bank reiterated its Buy rating on SemGroup Corp. (NYSE: SEMG), and raised its price target from $50.00 to $56.00.
Deutsche Bank noted, “We have previously discussed the near term events for SEMG related to the initiation of a common share dividend, expected in 2Q'13, and the drop-down of one-third of the SEMG interest in the White Cliffs Pipeline. Based upon comments from the Company on their future dividend policy, we expect the initial dividend rate to be $0.80 - $1.00 per share on an annual basis and be able to grow 10%-15% per year for the next several years. The White Cliffs pipeline expansion (SEMG 34%; RRMS 17%; Plains All-American 34%; Noble 10% and Western Gas Partners 5%), remains on schedule for a mid 2014 start-up and SEMG and RRMS are expected to finance the construction costs without issuance of equity.”
SemGroup Corp. closed on Friday at $46.70.
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Tags: Deutsche Bank