UPDATE: Credit Suisse Downgrades Phillips 66 Partners LP to Neutral, Raises PT on Valuation

In a report published Wednesday, Credit Suisse analyst John Edwards downgraded the rating on Phillips 66 Partners LP PSXP from Outperform to Neutral, but raised the price target from $42.00 to $47.00. In the report, Credit Suisse noted, “PSXP has delivered total returns of ~25% in the first two months of 2014, far ahead of the sector average and leading the pack for midstream MLPs. While we remain entirely confident in PSXP's growth story, de-risked cash flow and 22% 3-year distribution CAGR, we believe the current stock price fairly reflects its growth potential. We have tweaked our model for the recently announced dropdown and are raising our distribution expectations slightly.” Phillips 66 Partners LP closed on Tuesday at $46.28.