Zacks Investment Research upgraded shares of Sunoco Logistics Partners, L.P. (SXL) from NEUTRAL to OUTPERFORM on September 10, 2014, with a target price of $60.00.
Following second quarter earnings beat, we are upgrading our recommendation on Sunoco Logistics Partners to Outperform from Neutral. We like the crude oil pipelines and terminals operator's growth visibility and solid DCF coverage. Some of its organic projects, which are nearing start-ups, are expected to be immediately accretive to the partnership's earnings and distributable cash. As it is, we are a fan of Sunoco Logistics' steady cash-flow generating pipeline assets, which provide stability and financial capacity to deliver cash distributions in a disciplined manner. Being incrementally more positive on the partnership, we see the stock performing above with the broader market.
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