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What Do Analysts Recommend for NuStar Energy?

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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.

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Outlook for NuStar Energy

Investors could consider the following positives and negatives before including NS as a long-term investment:

Positives

  • 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.”

Negatives

  • 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

For more company overviews and indicator analyses on master limited partnerships, you can refer to our Master Limited Partnerships page.

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