UPDATE: Bank of America Reiterates on Western Refining Logistics LP on Attractive Long-Term Prospects

In a report published Tuesday, Bank of America analyst Brian Brazinski reiterated a Buy rating on Western Refining Logistics LP WNRL, and raised the price target from $34.00 to $38.00. In the report, Bank of America noted, “We recently met with management from WNRL and Western Refining, Inc (WNR), WNRL's general partner (GP). We discussed several topics: 1) WNRL's organic growth potential, which is supported by throughput growth on the Delaware Basin mainline and gathering system development, 2) its sizeable drop-down dowry, which now includes assets at Northern Tier Energy, LP (NTI), and 3) sources of long-term growth for WNR/WNRL – such as building condensate logistics assets near its Delaware Basin mainline, starting with the 125MBpd pipeline project announced by WNR on 17 April 2014. "We view these updates positively for WNRL and adjust our model to incorporate a larger drop-down and a faster ramp in throughput on the Delaware Basin mainline.” Western Refining Logistics LP closed on Monday at $31.81.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsBank of AmericaBrian Brazinski
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