UPDATE: JP Morgan Initiates Global Partners with Neutral, $24 PT

JP Morgan initiates its coverage on Global Partners

with a Neutral rating and a price target of $24 on possible margin and volume pressures ahead. JP Morgan says, "While Global Partners engages in Liquids T&S, the partnership differs from subsector peers under coverage as marketing and taking title to the commodity represents a much more significant component to GLP's business model. Global has historically been a growth through acquisition story, although the partnership has recently identified organic growth opportunities that capitalize on increasing Bakken production. Although GLP screens cheap versus peers, we are on the sidelines given our concerns that the backwardated gasoline market (pressuring margins) and the warm winter (weighing on heating oil volumes) will adversely impact near term results." GLP closed at $23.03 on Friday.