UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Sunoco Logistics Partners

In a report published Monday, Citigroup reiterated its Buy rating on Sunoco Logistics Partners L.P. SXL, and raised its price target from $45.00 to $55.50. Citigroup noted, “Following another great quarter, continued project development, and supportive fundamentals, we are increasing our 2012 & 2013 EBITDA estimates by 7.6% and 9% respectively and increasing our target price to $55.50. We now estimate SXL will aggressively grow the distribution by ~25% over the next 12-months to $2.36/unit annualized and expect units to trade at a below average yield of 4.25%...SXL reported record results as 2Q:12 Adj EBITDA of $206.0 mil beat our estimate and the Street consensus by over 35% driven by strong performance from all segments. Distributable cash flow of $166.0 mil covered distributions by 2.80x. Mgmt also announced a 10% sequential step up in the distribution to $0.47/unit ($1.88 annualized), up 16% YoY. We believe this strong distribution growth trend is going to continue as projects and fundamentals support cash flows well above SXL's current distribution payout.” Sunoco Logistics Partners L.P. closed on Friday at $42.29.