UPDATE: Stifel Upgrades Sunoco Logistics Partners LP to Buy, Names $56 PT on Expanding Marcellus and Utica Footprints

In a report published Friday, Stifel analyst Selman Akyol upgraded the rating on

from Hold to Buy, and named a $56.00 price target. In the report, Stifel noted, “Sunoco Logistics Partners posted another strong quarter and their growth continues with 13 successful open seasons and one project currently being developed. We believe the partnership continues to benefit from the inflow of crude oil particularly into south Texas and is starting to benefit from the abundance of ethane with Mariner West ramping up. Additionally, we see the announced Mariner East 2 project and Marcus Hook buildout as indicators the partnership sees room for expansion in the Marcellus and Utica plays. Given the backlog of projects and consistent distribution growth/coverage, we are raising our rating to Buy from Hold. We are establishing a $56 rounded target price, which is based on our FY15 DPU estimate of $1.775 and a targeted yield of 3.2%. We highlight a comp group from SXL trades at a 2.9% yield, which we think provides additional upside as SXL delivers consistent growth. Price appreciation of 15.7% combined with its current yield of 3.2% provides investors a total return potential of approximately 18.9%.” Sunoco Logistics Partners LP closed on Thursday at $48.40.