Analyst ratings for NuStar Energy
In this article, we’ll look at what Wall Street analysts recommend for NuStar Energy (NS). 90% of analysts rate NuStar Energy a “hold” and the remaining 10% rate it as a “buy.” The MLP has no “sell” recommendations.
The median broker target price of $49 for NS implies a -2.7% price return in the next 12 months from its June 15, 2016, closing price of $50.40. Peers Sunoco Logistics Partners (SXL) and Genesis Energy (GEL) have “buy” ratings from 53.8% and 63.4% of analysts surveyed by Bloomberg, respectively. 70% of analysts rate Rose Rock Midstream Partners (RRMS) as a “hold.” NuStar’s general partner, NuStar GP Holdings (NSH), has “hold” ratings from 46.2% of analysts.
Outlook for NuStar Energy
Investors could consider the following positives and negatives before including NS as a long-term investment:
- distribution coverage of greater than one
- strong storage lease utilization of 93%
- refining product throughput volumes continue to grow
- crude export opportunities, with NuStar and ConocoPhillips loading the “first export cargo of U.S.-produced light crude oil since the 40-year-old ban was lifted on December 18.”
- flat distributions over the past several quarters
- highly leveraged
- declining Eagle Ford production affects crude throughput volumes.
- the fuel marketing business is not doing well due to declining margins in the current low price environment
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