UPDATE: Deutsche Bank Upgrades Buckeye Partners LP Following Announcement of Hess Products Acquisition Deal

In a report published Monday, Deutsche Bank analyst Curt Launer upgraded the rating on Buckeye Partners LP BPL from Hold to Buy, and raised the price target from $70.00 to $75.00. In the report, Deutsche Bank noted, “The addition of the deal announced last week where BPL is acquiring products terminals from Hess for $850 million and the completion of an equity offering of about $500 million produce an updated model (excerpted below) that shows a 20% increase in ebitda in 2014 on top of the 18% increase in ebitda that we estimate for 2013. Our forecast distribution growth rate per unit is now 5%, an increase from the 3% level we have in place for 2013. Buy.” Buckeye Partners LP closed on Friday at $65.93.
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Posted In: Analyst ColorUpgradesAnalyst RatingsCurt LaunerDeutsche Bank
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