UPDATE: Bank of America Initiates Northern Tier Energy at Buy with $22 PO on Yield

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Bank of America initiated its coverage on Northern Tier Energy
NTI
with a Buy rating and a price objective of $22 a share. Bank of America noted, "NTI is the first refiner structured as a variable distribution MLP – a refiner that will distribute 100% of available cashflow to unit holders, enabling investors full leverage to seasonal margin fluctuations and crude differentials. While unit price valuation and volatility likely attract a different dynamic than ‘C' corp refining peers, we expect yield to help provide support during periods of seasonal weakness and at current levels of 13.5% based on 2013 distributable cash flow, looks attractive to us." Northern Tier Energy closed at $18.30 on Friday.
Posted In: Analyst ColorInitiationPre-Market OutlookAnalyst RatingsBank of America
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