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UPDATE: Stifel Downgrades World Point Terminals LP As Timing Of Distribution Growth Is Still Elusive

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In a report published Monday, Stifel analyst Selman Akyol downgraded the rating on World Point Terminals LP (NYSE: WPT) from Buy to Hold, and removed the $21.00 price target.

In the report, Stifel noted, "World Point Terminals LP (WPT) owns and operates crude oil and refined product storage and terminals. Management hosted its annual conference call and provided insights into the terminaling environment with expectations that storage rates for several products should continue to be supported by a contango market. In addition, WPT completed a dropdown of 0.7 million barrels of incremental storage in Greensboro, NC at the beginning of 2015 and continues to upgrade its Mobile, Alabama terminals that were acquired in June 2014.

"While the partnership's contracted capacity decreased to 82% from 85% quarter-over-quarter on its 14.6 million barrels of storage, we continue to believe WPT will produce stable cash flow with coverage in excess of 1.0x. In addition, incremental cash flow may be realized as tanks are brought on line at its Mobile terminal. With that said, we are downgrading our rating to Hold as we believe management's lack of commitment to grow the distribution and the lack of access to management outweighs WPT's clean balance sheet and stable cash flow which currently produces a yield of 6.4%."

World Point Terminals LP closed on Friday at $18.67.

Latest Ratings for WPT

DateFirmActionFromTo
Sep 2016UpgradesHoldBuy
Apr 2015UpgradesNeutralBuy
Mar 2015DowngradesOutperformUnderperform

View More Analyst Ratings for WPT
View the Latest Analyst Ratings

Posted-In: Selman Akyol StifelAnalyst Color Downgrades Analyst Ratings

 

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