UPDATE: Deutsche Bank Initiates Phillips 66 Partners LP with Hold on Multiple Positive Factors

In a report published Monday, Deutsche Bank analyst Curt Launer initiated coverage on

with a Hold rating and $35.00 price target. In the report, Deutsche Bank noted, “PSXP has risen over 40% from its $23 per unit IPO pricing including a first day move of about 30%. We note the overall fundamental strengths of PSXP in terms of quality of assets, fee based business, and visible initial drop-downs as supportive of the price performance. The initial expected drop-downs of Sand Hills and Southern Hills under Right of First Offer agreements add about $100 million in ebitda in the next year or so.” Phillips 66 Partners LP closed on Friday at $32.32.