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UPDATE: Credit Suisse Downgrades Magellan Midstream Partners to Neutral on Valuation

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Credit Suisse lowered its rating on Magellan Midstream Partners (NYSE: MMP) from Outperform to Neutral but raised its price target from $44.50 to $46.

Credit Suisse noted, "We are downgrading MMP to Market Perform on valuation. MMP has gained 11% over the last three months and over 23% over the last six and appears fairly valued on a yield spread basis. … We continue to believe that MMP should trade at a healthy 150 bp premium to the AMZX given its above-sector distribution growth, predictable cash flows, absence of IDR burden, low risk business model, and strong balance sheet. However, we are modeling NTM total return potential of 6%-18% which is not quite enough to justify an Outperform rating, thus our downgrade to Neutral."

Magellan Midstream Partners closed at $43.43 on Wednesday.

Latest Ratings for MMP

Jan 2018Credit SuisseInitiates Coverage OnUnderperform
Jan 2018U.S. Capital AdvisorsUpgradesOverweightBuy
Dec 2017BMO CapitalInitiates Coverage OnOutperform

View More Analyst Ratings for MMP
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Posted-In: Credit SuisseAnalyst Color Downgrades Intraday Update Analyst Ratings


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