UPDATE: Credit Suisse Downgrades NuStar Energy LP to Underperform; Distribution at Risk
Credit Suisse downgraded NuStar Energy LP (NYSE: NS) from Neutral to Underperform and lowered the price target from $49.00 to $47.00.
Credit Suisse commented, "We believe NS' distribution is once again at risk to a cut following TexStar's termination of the NGL acquisition. In our view, the crude AND NGL acquisitions were essential to ensuring NS' ability to cover its distribution by 2014. Based on our estimates, NS will not cover its distribution until 2016. Given the material impact of this failed transaction, we expect units to once again reflect the risk of a distribution cut."
NuStar Energy LP closed at $50.50 on Friday.
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