Analyst Actions: NuStar Energy LP Downgraded To Underperform, TP Cut $2 at Credit Suisse
NuStar Energy LP ( NS ) has been downgraded to an Underperform rating from Neutral by analysts at Credit Suisse. The firm also lowered its target price on the stock to $47 from $49 a share, while revising its earnings estimates for the company.
"We believe NS' distribution is once again at risk to a cut following TexStar's termination of the NGL acquisition," said Credit Suisse. "In our view, the crude AND NGL acquisitions were essential to ensuring NS' ability to cover its distribution by 2014. Based on our estimates, NS will not cover its distribution until 2016. Given the material impact of this failed transaction, we expect units to once again reflect the risk of a distribution cut."
Credit Suisse revised its 2013, 2014 and 2015 EPU estimates to $2.16, $2.35, $2.45 from $1.86, $2.21 and $2.55 respectively.
Shares of NS are down 6.7% to $47.15 in afternoon trade, amid a 52-week range of $38.43 - $62.64.