UPDATE: Credit Suisse Upgrades NuStar Energy to Neutral; Distribution Cut Priced In

Credit Suisse raised its rating on NuStar Energy

from Underperform to Neutral and reiterated its price target at $44. Credit Suisse said, "Our concerns regarding the sustainability of NS' distribution are now reflected in the current unit price. While unclear as to the company's path forward (distribution cut vs. grow out of the current hole), we believe the units are fairly valued based upon the cash flow power of NS' underlying fee-based pipeline and storage assets." NuStar Energy closed at $39.07 on Monday.