UPDATE: Goldman Sachs Initiates Coverage on Western Refining Logistics LP with Neutral Rating, $26 PT on Stable Cash Flow, Growth Prospects

In a report published Monday, Goldman Sachs analyst Steve Sherowski initiated coverage on Western Refining Logistics LP WNRL with a Neutral rating and $26.00 price target. In the report, Goldman Sachs noted, “We initiate coverage of Western Refining Logistics (WNRL) with a Neutral rating and 12-month $26 price target that implies 11% total return upside (including yield). WNRL's assets generate stable cash flows underpinned by long-term contracts with parent, Western Refining (WNR). WNRL's gathering assets are also well positioned to benefit from Permian production growth – we estimate higher utilization rates on these assets will increase EBITDA by $35mn annually (vs. $65mn in 2014), requiring only $45mn of capex. WNRL has a 4.5% upfront yield (in-line with its refining logistics peer group) and strong balance sheet with no debt.” Western Refining Logistics LP closed on Friday at $24.34.