UPDATE: Wells Fargo Initiates Coverage On PBF Logistics

In a research note released Monday, Wells Fargo analyst Satish Dadral initiated coverage on

with a Market Perform rating and a valuation range of $27.00 to $29.00. The firm said that the company is poised to deliver an attractive five-year distribution CAGR of 11.4 percent. The firm also stated that PBF Logistics benefits from a low-risk business model consisting of long-term revenue instead of short-term; this includes long-term contracts and a fee-based system. The firm continued to say that joint bids for third-party refining assets could accelerate growth; PBF Logistics is partnering and intending to grow by pursuing refining acquisitions with its sponsor. Finally, the firm stated PF Logistics primarily owns crude oil rail assets, which is both a benefit and a risk. Shares PBF Logistics closed Wednesday at $28.54, up 2.18 percent.