Among our select peer group, ~27.3% of analysts surveyed rate NuStar Energy (NS) as “buy,” ~63.6% rate it as “hold,” and the remaining ~9.1% rate it as “sell.” Although NuStar Energy’s market performance has been above par, the partnership has received “sell” recommendations. This could be due to stagnant distribution growth, high distribution yield, and high leverage.
NuStar’s median broker target price of $67.75 implies an ~13.9% price return in the next 12 months. The most recent recommendation by Raymond James rates NuStar as “market perform.”
Of the analysts, ~91.7% of them rate Tesoro Logistics (TLLP) a “buy.” The remaining ~8.3% rate it a “hold.” Its median broker target price of $67.50 implies an ~19.3% price return in the next 12 months. The two most recent recommendations by J.P. Morgan (JPM) and Evercore ISI rate Tesoro Logistics as “overweight” and “buy” with a target price of $69 and $64, respectively.
It’s important to note that 60% of analysts surveyed by Bloomberg rate Sunoco Logistics (SXL) as “buy” and the remaining 40% rate it as “hold.” Its median broker target price of $49.17 implies an ~29.6% price return in the next 12 months. The two most recent recommendations by Morgan Stanley (MS) and Jefferies rate Sunoco Logistics as “overweight or attractive” and “buy” with a target price of $48 and $46, respectively.
Of the analysts, 36.4% of them rate Buckeye Partners (BPL) as “buy” and the remaining ~63.4% rate it as “hold.” Its median broker target price of $83.60 implies an ~15.8% price return in the next 12 months. The two most recent recommendations are by US Capital Advisors and Argus Research. They rate Buckeye Partners as “hold” and “buy” with a target price of $79 and $84, respectively.
Key ETFs and stocks
Investors can include Buckeye Partners, Sunoco Logistics, Tesoro Logistics, and NuStar Energy in their portfolio by buying individual common units listed on a stock exchange or through ETFs like the Alerian MLP ETF (AMLP). Together, the four companies account for ~15.23% of AMLP. Sunoco Logistics and Tesoro Logistics are subsidiaries of Energy Transfer Partners (ETP) and Tesoro (TSO). Tesoro accounts for ~2.5% of the Energy Select Sector SPDR Fund (XLE).
For more indicator series on midstream companies, visit Market Realist’s Midstream Oil and Gas page.