UPDATE: J.P. Morgan Reiterates Overweight Rating, Raises PT on Tesoro Logistics

In a report published Monday, J.P. Morgan & Co. reiterated its Overweight rating on Tesoro Logistics LP TLLP, and raised its price target from $38.00 to $48.00. J.P. Morgan noted, “We rate TLLP OW with a YE 2013 $48/unit price target. With fee-based contracts that provide minimum volume commitments, TLLP possesses significant cash flow stability and fits the bill for investors looking to avoid direct commodity price exposure. With a large slate of drop-down candidates at TSO (TLLP's parent company) and solid organic growth opportunities in the Bakken, we believe TLLP possessed a clear path to MLP leading distribution growth even before the game changing BP acquisition by TLLP's parent, TSO, which lined up ~$100mm of EBITDA for drop-downs. We believe the partnership's high growth, relatively low risk profile offers a compelling risk/reward proposition.” Tesoro Logistics LP closed on Friday at $43.88.