UPDATE: Bank Of America Resumes Coverage On Susser Petroleum Partners LP Following ETP Acquisitions
In a report published Friday, Bank of America analyst Gabe Moreen resumed coverage on Susser Petroleum Partners LP (NYSE: SUSP) 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.
Latest Ratings for SUSP
|Sep 2014||Credit Suisse||Initiates Coverage on||Neutral|
|Aug 2014||Wells Fargo||Downgrades||Outperform||Market Perform|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.