UPDATE: Credit Suisse Reinstates Coverage on Sunoco Logistics Partners, Upgrades to Outperform Rating, Reiterates $71 PT on Well-Positioned Asset Footprint

In a report published Wednesday, Credit Suisse analyst John Edwards reinstated coverage on Sunoco Logistics Partners

, upgraded the rating from Neutral to Outperform, and reiterated the $71.00 price target. In the report, Edwards noted, “In our view, SXL's asset footprint is well positioned to take advantage of the emerging bottlenecks in energy infrastructure plumbing, particularly on the oil side. Our $71 target price equates to a 16% total return over the next 12 months versus 8-9% for the sector. We expect SXL to increase its distribution by 5% each quarter this year (22% for the full year) and 15% over the next three years, which would be among the top tier in the sector. Only 5 names of the 40+ that we cover have distribution growth over 15% for the next two years. Visibility to growth prospects are the best since we started following the name over five years ago, with $700mm in growth cap-ex in 2013 following $324mm in 2012. Additional opportunities are on the horizon.” Sunoco Logistics Partners closed on Tuesday at $64.10.