Sunoco Looks Attractive: Analyst Cites Pullback, Upcoming Guidance As Catalysts
Portfolio Pulse from Lekha Gupta
Stifel analyst Selman Akyol upgraded Sunoco LP (NYSE:SUN) to Buy from Hold, citing a 13% price drop since mid-February and upcoming guidance as catalysts. The guidance, expected around Q2 FY24 earnings, will provide updates on Sunoco's legacy business, NuStar assets, and potential synergies. Akyol estimates EBITDA of $1.48 billion in FY24 and $1.79 billion in FY25. Investors can also gain exposure via InfraCap MLP ETF (NYSE:AMZA) and Global X MLP ETF (NYSE:MLPA).
June 07, 2024 | 4:29 pm
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POSITIVE IMPACT
Investors can gain exposure to Sunoco LP via InfraCap MLP ETF (NYSE:AMZA).
AMZA holds Sunoco LP, and positive news for Sunoco could benefit the ETF.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Sunoco LP via Global X MLP ETF (NYSE:MLPA).
MLPA holds Sunoco LP, and positive news for Sunoco could benefit the ETF.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Stifel analyst Selman Akyol upgraded Sunoco LP to Buy from Hold, citing a 13% price drop since mid-February and upcoming guidance as catalysts. The guidance will provide updates on Sunoco's legacy business, NuStar assets, and potential synergies.
The upgrade to Buy and the upcoming guidance are likely to positively impact Sunoco's stock price in the short term. The 13% price drop presents an attractive re-entry point for investors.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100