Zacks Investment Research upgraded shares of Buckeye Partnrs (BPL) from UNDERPERFORM to NEUTRAL on January 09, 2013, with a target price of $52.00.
We upgrade our recommendation to Neutral from Underperform on Buckeye Partners L.P owing to favorable returns from its organic and inorganic projects. We believe purchase of additional 20% stake in WesPac Pipelines-Memphis LLC and increase in contribution from the BORCO facility will have a positive impact on the results of the partnership. The Perth Amboy terminal project is anticipated to be another near-term growth driver. Moreover, a strong cash flow generation will enable the partnership to pursue high-quality investment prospects in the long term. However, the soft performance from Energy services business continues to pose challenges for the partnership.
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