Analyst Ratings for NuStar Energy
NuStar Energy Beat EBITDA Estimates in 4Q15 Earnings Release
Analyst ratings for NuStar Energy
In this article, we’ll look at what Wall Street analysts recommend for NuStar Energy (NS). At a broader level, ~88.9% of analysts rate NuStar Energy a “hold” and the remaining ~11.1% rate it a “buy.”
The median broker target price of $44 for NuStar Energy implies a ~36.0% price return in the next 12 months from its February 3, 2016, closing price of $33.50. Peers Sunoco Logistics Partners (SXL) and Genesis Energy (GEL) have “buy” ratings from 62.5% and 60.0% of analysts, respectively. Plus, 72.7% of analysts rate Rose Rock Midstream Partners (RRMS) a “hold.” NS forms 0.62% of the Multi-Asset Diversified Income Index ETF (MDIV).
Outlook for NuStar Energy
Investors can consider the following positives and negatives before they decide to include NuStar Energy (NS) as a long-term investment.
Positives
impressive distribution coverage of 1.05x
strong storage lease utilization of 93%
growing refining product throughput volumes
Crude export opportunities. NuStar Energy and ConocoPhillips announced that they loaded the “first export cargo of U.S.-produced light crude oil since the 40-year-old ban was lifted on December 18.”
Negatives
Declining Eagle Ford production affects NuStar Energy’s crude throughput volumes. However, according to the company’s CEO, Bradley Barron, “The Eagle Ford portion of our business is a narrow slice of our operation and comprises less than 20% of our total 2015 segment EBITDA. Throughputs in these Eagle Ford pipeline and storage assets were down only 18% in the fourth quarter of 2015 compared to the record throughput levels we’ve reached in the first quarter of the year.”
NuStar Energy’s fuel marketing business is not doing well due to declining margins in the current low price environment.
For more post-earnings coverage on midstream companies, please refer to our Master Limited Partnerships page.
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