Loading...
Loading...
Bank of America lowered its rating on Oiltanking Partners LP
OILT from Buy to Neutral but raises its price objective from $35 to $38.
Bank of America commented, "With a current yield of 3.9% (versus an average MLP sector yield of 6.2%) and given strong appreciation we see OILT's valuation as pricing in its positive attributes, which include: 1) high quality, fee-based asset base with attractive growth opportunities, 2) an underlevered balance sheet, which should allow OILT to fund growth projects with low cost debt over the medium term, 3) strong, supportive parent in Oiltanking GmbH, 4) relatively small size, which means projects can be impactful. …[W]e see the visibility into growth at OILT as somewhat less clear than some of the partnership's peers with near-term asset drop-down potential."
Oiltanking Partners LP closed at $37.24 on Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in