UPDATE: Credit Suisse Downgrades Tesoro Logistics LP to Neutralon Valuation

Credit Suisse reduced its rating on Tesoro Logistics LP TLLP from Outperform to Neutral and lowers its price target from $41 to $38. Credit Suisse noted, "We are downgrading TLLP to Neutral (from Outperform). In our view, the stock's current yield of ~4% fairly reflects the partnership's best-in-class distribution growth over the next 12 months. Furthermore, we believe the majority of TLLP's major catalysts are now behind the stock after the recent dropdown announcement. Our $41 TP is based on a 3-stage distribution discount model that assumes a 9.0% discount rate, 12.7% distribution CAGR over the first 5 yrs., 5.5% over the following 5 yrs. and 1.5% terminal growth rate." Tesoro Logistics LP closed at $38.73 on Tuesday.