UPDATE: Bank of America Initiates SunCoke Energy Partners at Buy on Valuation, Drop-Down Growth
Bank of America initiated coverage on SunCoke Energy Partners (NASDAQ: SXCP) with a Buy rating and a $23.00 price objective.
Bank of America noted, "We initiate SunCoke Energy Partners LP (SXCP) with a Buy rating and $23 PO. SXCP is the MLP spinoff of SunCoke Energy (SXC) and holds 65% of two coke ovens. We like its steady take-or-pay contract structure with ~13 remaining years. SXCP compares to traditional fee-based MLPs given its pass-through structure and limited commodity risk. We estimate drop downs can drive 6-7% annual distribution growth. It IPOed at $19/shr, the low end of its range, on Jan 18."
SunCoke Energy Partners closed at $20.55 on Monday.
Latest Ratings for SXCP
|Sep 2015||FBR Capital||Initiates Coverage on||Outperform|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.