CrossAmerica Partners (CAPL), the MLP mainly involved in wholesale distribution of refined products, saw several target price revisions and a rating update last week. The changes came after the partnership’s 4Q17 earnings announcement. The partnership announced an adjusted EBITDA of $28.6 million in 4Q17 compared to $27.2 million in 4Q16, which represents marginal growth of 5.1% YoY. Last week, CrossAmerican Partners’ rating changes included:
- Jefferies reduced the target price to $28 from $29.
- Raymond James reduced the target price to $29 from $30.
- Baird lowered the partnership to “neutral,” which is equivalent to “hold.” Baird cut the target price to $26 from $33.
Now, 50% of the analysts surveyed by Reuters rate CrossAmerican Partners as a “buy,” while 50% rate it as a “hold.” Sunoco LP (SUN) has a “hold” rating from 58.8% of the analysts.
Currently, CrossAmerica Partners is trading below the low range ($26) of analysts’ target price. The partnership’s average target price of $27.9 implies ~21% upside potential from the current price levels.
Spectra Energy Partners
Mizuho initiated coverage on Spectra Energy Partners (SEP) with a “neutral” rating last week. Mizuho assigned Spectra Energy Partners a target price of $43. Of the analysts, 42.1% rate Spectra Energy Partners as a “buy,” 42.1% rate it as a “hold,” and 15.8% rate it as a “sell.” Spectra Energy Partners is trading close to the low range ($39) of analysts’ target price. Spectra Energy Partners’ average target price of $46.1 implies ~18% upside potential from the current price levels.
For an earnings roundup of the top MLPs, read A Quarterly Earnings Roundup for Master Limited Partnerships.