UPDATE: Stifel Nicolaus Raises PT to $51 on TransMontaigne Partners on BOSTCO Reinvestment
Stifel Nicolaus maintained TransMontaigne Partners (NYSE: TLP) with a Buy and raised the price target from $41.00 to $51.00.
Stifel Nicolaus analyst Selman Akyol wrote, "We commend the partnership's decision to reinvest in the BOSTCO project. Previously, we questioned the line of sight for growth in cash flows. However with the BOSTCO project and subsequent commitment to fund the remaining construction, we believe investors have a clearer line of sight to stronger DPU growth in the future. We expect FY13 to be relatively modest with more meaningful growth resuming in FY14 as it benefits from BOSTCO coming online. In addition, while nothing is definitive, there is potential for BOSTCO to expand beyond Phase I with Phase II and III being contemplated."
TransMontaigne Partners closed at $47.42 on Tuesday.
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