UPDATE: Credit Suisse Assumes Coverage on Sunoco Logistics Partners as Strong Pipeline is Largely in Stock

In a report published Tuesday, Credit Suisse analyst Abhiram Rajendran assumed coverage on

with a Neutral rating and $81.00 price target, up from $72.00. In the report, Credit Suisse noted, “While SXL has one of the strongest and most visible project pipelines in the space, we believe a fair amount of this is embedded in the stock. We see SXL delivering decent returns of ~14% over the next 12 months, but this is broadly in line with the group overall. Accelerating growth opportunities are clear with the record capex budget mgmt laid out for 2014, and further project announcements could lead to upside to our outlook. Despite our Neutral rating, we still see SXL as one of the better risk/rewards (safest names) in the space helped by the solid cushion in its distribution coverage that can withstand market/commodity volatility.” Sunoco Logistics Partners closed on Tuesday at $73.47.