UPDATE: Bank of America Resumes Coverage on Susser Petroleum Partners LP with Neutral Rating, $59 PT Following ETP Acquisitions

In a report published Friday, Bank of America analyst Gabe Moreen resumed coverage on

with a Neutral rating and $59.00 price target. In the report, Bank of America noted, “On 28 April 2014, Energy Transfer Partners, LP (ETP) announced the acquisition of SUSP's general partner (GP), Susser Holdings Corp. (SUSS) (see: The Laredo Taco meets the Philly soft pretzel). SUSP will become the primary vehicle to house SUSS and legacy-SUN's retail gasoline operations via expected drop-downs from ETP over time. We estimate legacy-SUN's retail marketing operations will generate $425mn of annual EBITDA and SUSS is estimated to generate $120mn, implying total drop-down value potential of $5.5-6.5bn, in our view.” Susser Petroleum Partners LP closed on Thursday at $53.52.