UPDATE: Goldman Sachs Upgrades Holly Energy Partners as Units are Now Fairly Priced

In a report published Tuesday, Goldman Sachs analyst Steve Sherowski upgraded the rating on

from Sell to Neutral, but lowered the price target from $37.00 to $33.00. In the report, Goldman Sachs noted, “We are upgrading HEP to Neutral from Sell as we now believe unit price downside risk, due to slower relative distribution growth (vs. peers), is accurately reflected in the valuation. For 2014, we currently forecast 6.1% distribution growth for HEP compared to 6.0% growth for Energy MLPs under coverage. We lower our 12-month price target to $33 (from $37), which represents 10% total return potential (including distribution yield). Since putting HEP on the Sell list on January 28 2013, its units have declined 11% (vs. +6.5% for the AMZ and +17% for the S&P 500).” Holly Energy Partners closed on Monday at $31.73.