Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/ap/2012-11-13/nustar-gains-after-credit-suisse-upgrade

AP News

NuStar gains after Credit Suisse upgrade


NEW YORK (AP) — A Credit Suisse analyst upgraded NuStar Energy LP on Tuesday, saying the pipeline operator and asphalt refiner has a fair price after a big selloff.

THE SPARK: Brett Reilly raised his rating for NuStar to "Neutral" from "Underperform." Investor worries about the San Antonio-based company cutting its distribution are now reflected in its stock price, he said.

THE ANALYSIS: Reilly estimates that a pipeline master limited partnership, such as NuStar should have a yield — annual distribution divided by the stock price — of 8 percent if its growth is slow. Assuming that, the company's current price implies a 29 percent cut in the company's current distribution, to $3.13 from $4.38.

But Reilly estimated that, based just on NuStar's cash flow from its pipelines and storage facilities, it should be able to make a higher payment to investors, of $3.30, and he's not forecasting a distribution cut.

The partnership units, or shares, have lost about 31 percent of their value. In the past two weeks alone, they're off 20 percent.

SHARE ACTION: Up $2.30, or 5.9 percent, to $41.37.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus