Sunoco, NuStar Acquisition Concerns 'Do Not Justify Stock's Underperformance': Analyst
Portfolio Pulse from Priya Nigam
Sunoco LP (NYSE:SUN) has been upgraded from Neutral to Buy by Mizuho Securities' analyst Gabriel Moreen, who also raised the price target from $60 to $59. Despite a 22% decline since March, Moreen believes the stock's underperformance is unjustified given Sunoco's strong EBITDA growth, synergy potential from the NuStar acquisition, and a potentially investment-grade balance sheet.
June 04, 2024 | 3:12 pm
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Sunoco LP has been upgraded to Buy by Mizuho Securities' analyst Gabriel Moreen, who also raised the price target from $60 to $59. The analyst believes the stock's 22% decline since March is unjustified given the company's strong EBITDA growth, synergy potential from the NuStar acquisition, and a potentially investment-grade balance sheet.
The upgrade from Neutral to Buy and the raised price target indicate a positive outlook for Sunoco. The analyst's confidence in the company's strong EBITDA growth, synergy potential from the NuStar acquisition, and a potentially investment-grade balance sheet suggests that the stock is undervalued and likely to see a positive price movement in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100