Credit Suisse Raises Its PT on Sunoco Logistics to $87 (SXL)

Credit Suisse is out with its report today on Sunoco Logistics SXL, raising its price target from $86 to $87. In a note to clients, Credit Suisse writes, "Results essentially in line; no change to our thesis: SXL's EBITDA of $104MM was above the consensus estimate of $98MM, but slightly below our $109MM forecast and its total distributable cash flow of $69MM was just shy of our $70MM estimate. SXL declared a 4Q10 distribution of $1.18, which, although $0.02 below the consensus estimate, was consistent with our forecast and management's previous guidance of 6% distribution growth. Maintain Neutral rating, increasing 12-month price target to $87 from $86: The increase reflects rolling forward one quarter in our 3-stage distribution discount model (DDM). Our DDM assumes an 8.5% discount rate, distribution CAGR of 6% over the next 5 years, 3% over the following 5 years and 1.5% terminal growth rate." Shares of SXL closed Monday at $85.79, down 0.27% from Friday's close.