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Sunoco cut to Sell at Goldman with Street-low price target

Published 03/14/2018, 08:48 AM
© Reuters.  Sunoco cut to Sell at Goldman with Street-low price target
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  • Sunoco LP (NYSE:SUN) -2.2% premarket after Goldman Sachs (NYSE:GS) downgrades shares to Sell from Neutral with a Street-low $28 price target, reduced from $33, saying the shares warrant a valuation discount.
  • The firm sees further downside risk to consensus expectations which it says reflect the high end of management guidance for gross profit margin per gallon.
  • From 2018-20, Goldman estimates SUN to have a weaker-than-average balance sheet of 5x net debt/EBITDA vs. the MLP average at 3.8x.
  • Now read: Energy Transfer: Broken Stock Or Broken Company?


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