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Analyst Ratings for NuStar Energy

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Dec. 4 2020, Updated 10:52 a.m. ET

Analyst ratings for NuStar Energy

In this article, we’ll look at what Wall Street analysts recommend for NuStar Energy (NS). At a broader level, ~88.9% of analysts rate NuStar Energy a “hold” and the remaining ~11.1% rate it a “buy.”

The median broker target price of $44 for NuStar Energy implies a ~36.0% price return in the next 12 months from its February 3, 2016, closing price of $33.50. Peers Sunoco Logistics Partners (SXL) and Genesis Energy (GEL) have “buy” ratings from 62.5% and 60.0% of analysts, respectively. Plus, 72.7% of analysts rate Rose Rock Midstream Partners (RRMS) a “hold.” NS forms 0.62% of the Multi-Asset Diversified Income Index ETF (MDIV).

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Outlook for NuStar Energy

Investors can consider the following positives and negatives before they decide to include NuStar Energy (NS) as a long-term investment.

Positives

  • impressive distribution coverage of 1.05x
  • strong storage lease utilization of 93%
  • growing refining product throughput volumes
  • Crude export opportunities. NuStar Energy and ConocoPhillips announced that they loaded the “first export cargo of U.S.-produced light crude oil since the 40-year-old ban was lifted on December 18.”

Negatives

  • Declining Eagle Ford production affects NuStar Energy’s crude throughput volumes. However, according to the company’s CEO, Bradley Barron, “The Eagle Ford portion of our business is a narrow slice of our operation and comprises less than 20% of our total 2015 segment EBITDA. Throughputs in these Eagle Ford pipeline and storage assets were down only 18% in the fourth quarter of 2015 compared to the record throughput levels we’ve reached in the first quarter of the year.”
  • NuStar Energy’s fuel marketing business is not doing well due to declining margins in the current low price environment.

For more post-earnings coverage on midstream companies, please refer to our Master Limited Partnerships page.

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