Market Overview

My goal is to be on stage with my computer and let you
see my screen and make sure you know what buttons to
press, where you’re getting in & out, how to calculate
risk, your targets — all of those things.
It’s real-life trading. Make sure you sign up!
- Jerremy Newsome

4 Reasons Magellan Midstream Partner Is Rated A Buy At Argus


Argus reiterated its Buy rating on Magellan Midstream Partners, L.P. (NYSE: MMP), after a better-than-expected Q2 EPS.

The analysts lifted their 2016 EPS estimate to $3.56 from $3.51, which is above the consensus of $3.51. Moreover, they raised the 2017 estimate to $3.86 from $3.84 to reflect incremental contributions from the Little Rock pipeline, which can transport 75,000 barrels of oil per day and entered service on July 5.

The analysts mentioned four factors their Buy rating is based on:

  • 1. The company derives most of its cash flow from long-term fee-based contracts, which minimizes the cash flow impact of low commodity prices.
  • 2. Lower commodity prices have boosted demand for refined products and increased through put volumes on the company's pipeline assets.
  • 3. The stock's current valuation does not appear to reflect new projects coming into service within the next two years, which should continue to boost distributable cash flow.
  • 4. The company has healthy distribution coverage metrics and a strong record of raising distributions — with 57 quarterly increases and compound annual distribution growth of 13 percent since the company's 2001 IPO.

Argus has an $85 price target on shares.

Latest Ratings for MMP

May 2019Initiates Coverage OnAccumulate
Feb 2019DowngradesBuyNeutral
Jan 2019DowngradesBuyHold

View More Analyst Ratings for MMP
View the Latest Analyst Ratings

Posted-In: ArgusAnalyst Color Reiteration Analyst Ratings


Related Articles (MMP)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Do Apple Execs Lack Vision?

Barclays Cautious On Best Buy Heading Into Earnings