UPDATE: Wunderlich Securities Initiates Coverage on Southcross Energy Partners LP with Buy Rating, $19 PT on Positive Outlook

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In a report published Tuesday, Wunderlich Securities analyst Abhishek Sinha initiated coverage on
Southcross Energy Partners LPSXE
with a Buy rating and $19.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Southcross Energy Partners, L.P. (SXE) with a Buy rating and $19 price target. Southcross is a full-spectrum, integrated midstream operator, and the fifth largest operator in the Eagle Ford. In our view, the recent TexStar transaction along with the creation of the Holdings structure was a game changer for the company that provided a dependable and inventory-rich sponsor, raising its growth profile and improving its units' valuation. We expect SXE's margin contribution from fixed-fee/fixed-spread contracts to rise from 75% currently to 85%-90% in the near term. We believe SXE is a yield story where investors can get an attractive 13.2% yield and the potential for a solid total return; we forecast 68% from today's level, with relatively low risk.” Southcross Energy Partners LP closed on Monday at $12.24.
Posted In: Analyst ColorInitiationAnalyst RatingsAbhishek SinhaWunderlich Securities
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