Credit Suisse Sees Multiple Positive Catalysts For VTTI Energy Partners LP

In a report published Tuesday, Credit Suisse analyst John Edwards reiterated an Outperform rating and $31.00 price target on VTTI Energy Partners LP VTTI. In the report, Credit Suisse noted, “VTTI is well positioned to deliver low-double-digit distribution growth for a five-year period following its IPO, given (1) a fully fee-based, stable, de-risked cash flow model supported by multi-year contracts with an average tenor of more than four years; (2) visible drop-down inventory of ~38 MMBbl or ~3 times its storage capacity at IPO; (3) opportunity to fuel further growth via third-party acquisitions and organic capital spend at existing terminals; and (4) strong sponsor support from investment grade co's. Vitol and MISC that own VTTI B.V. and may have additional assets to be sold down to VTTI.” VTTI Energy Partners LP closed on Monday at $23.97.