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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

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

View More Analyst Ratings for MMP
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color Downgrades Intraday Update Analyst Ratings

 

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