UPDATE: Bank of America Initiates Susser Petroleum Partners at Buy on Outlook

Bank of America initiated coverage on Susser Petroleum Partners

with a Buy rating and a $28 price objective. Bank of America said, "We view SUSP as a lower-business-risk means to gain exposure to refined products wholesale distribution, given SUSP's primarily long-term and fixed margin contracts. … In our view, growth at SUSP can be achieved through multiple avenues, including organic expansion of its third-party dealer network, drop-downs of new-build convenience stores through sale/leaseback transactions, and third-party M&A. Although not forecast in our model, we believe M&A is an important growth strategy for SUSP and believe SUSP is well-positioned to pursue third-party M&A given its unlevered balance sheet." Susser Petroleum Partners closed at $24.40 on Friday.