UPDATE: Stifel Initiates Coverage on World Point Terminals LP with Buy Rating, $23.50 PT on Multiple Positive Factors

In a report published Tuesday, Stifel analyst Selman Akyol initiated coverage on

with a Buy rating and $23.50 price target. In the report, Stifel noted, “We are initiating coverage of World Point Terminals LP (WPT), a publicly traded master limited partnership (MLP) and operator of crude and refined product assets. WPT is a fee-based partnership formed to own, operate, develop, and acquire terminals and other assets related to the storage of light refined products, heavy refined products and crude oil. The assets are strategically located in the East Coast, Gulf Coast, and Midwest regions of the U.S. Most terminals are located along major waterways providing easy ship or barge access for the movement of petroleum products. In addition, they have truck racks for efficient loading logistics. We are initiating with a Buy rating on the units and a target price of $23.50. We base our target price on a 3Q14 annual distribution estimate of $1.285 and a 5.5% targeted yield. Accordingly, we estimate price appreciation of 16.9%, and when combined with current yield of approximately 6.0%, we arrive at a total return potential of 22.9%.” World Point Terminals LP closed on Friday at $20.10.