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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

DateFirmActionFromTo
Jul 2014CitigroupMaintainsNeutral
Apr 2014CitigroupMaintainsNeutral
Feb 2014Brean CapitalInitiates Coverage onBuy

View More Analyst Ratings for SXCP
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Posted-In: Bank of AmericaAnalyst Color Initiation Analyst Ratings

 

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