In a report published Monday, Bank of America analyst Gabe Moreen initiated coverage on Western Refining Logistics LP WNRL with a Buy rating and $29.00 price target.
In the report, Bank of America noted, “Western Refining Logistics, LP (WNRL) offers unitholders the ability to invest in a partnership with a balanced growth story, as WNRL has the potential to grow its distribution at a 12% CAGR via organic growth supplemented by asset drop-downs, in our view. WNRL kept $75mn of the proceeds from its IPO, which we forecast it will use to pre-finance growth projects. WNRL owns and operates crude oil and refined product pipelines and terminals that are supported by fee-based contracts with minimum volume commitments (MVCs). We believe WNRL has a low business risk profile given its MVC coverage, low direct commodity exposure, and cash flow visibility. WNRL has contracts in place with Western Refining Inc. (WNR), WNRL's general partner (GP), which cover ~90% of NTM revenues.”
Western Refining Logistics LP closed on Friday at $24.34.
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