Magellan Competes Via Low Cost Of Capital

Magellan Midstream Partners MMP is believed to have a relatively low risk profile, according to Oppenheimer. The fee based refined products with little direct commodity price exposure remain attractive, and purchasing of the GP and eliminating of IDRs (incentive distribution rights) simplified the company and lowered its cost of capital. Oppenheimer maintains its Outperform rating and $56 price target for Magellan, and forecasts growth in distributable cash flow organically adding to the already compelling after tax yield vs. comparable yield based investments. Magellan Midstream Partners closed yesterday at $49.65.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorNewsManagementMarketsAnalyst RatingsEnergymagellan midstream partnersOil & Gas Storage & TransportationOppenheimer
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!