Goldman Sachs Downgrades NuStar Energy, NuStar GP Holdings

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Here are a couple key takeaways on Goldman Sachs’ downgrade of NuStar Energy L.P. NS and Nustar GP Holdings, LLC NSH to Neutral on tempered growth expectations.

"The $25mn decrease is timing related due to a slower volume ramp on its South TX Phase 2 project ($15mn) as well as its Houston 12-inch pipeline ($10mn).

"Delaying & trimming 2015 distribution growth estimates We adjust our growth rate for 2016 to 2.5% (vs. 4%) on increased conservatism and slightly lower coverage.

2017-2018 remain unchanged at 4%.

"We lower our NS/NSH 12-month target prices by $5/$3 to $63/$42."

Shares of NuStar Energy were up 1.5 percent on average volume and shares of NuStar GP Holdings were down fractionally on average volume.

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Posted In: Analyst ColorAnalyst RatingsGoldman Sachs
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