UBS Cuts Price Target on Sunoco (SUN) to $33; Reiterates Buy

UBS reiterated a Buy rating on Sunoco (NYSE: SUN), and cut the price target to $33.00 (from $34.00), following the company's 3Q earnings report. UBS lowered 2016 adjusted EBITDA estimates to $694MM from $699MM on higher G&A assumptions and lower volume growth.

Analyst Shneur Gershuni commented, "Despite a strong quarter with margins above estimates, SUN's stock performance was weak following its conference call as concern around leverage remains. SUN ended the quarter with 5.97x net debt to Adjusted EBITDA; however, with its recent Denny acquisition, which closed in October, questions emerged on touching up against its 6.25x covenant. However, we think SUN can take steps, ex. ATM, preferred offering or Energy Transfer could offer support in order to remain in compliance with its covenant."

For an analyst ratings summary and ratings history on Sunoco click here. For more ratings news on Sunoco click here.

Shares of Sunoco closed at $23.81 yesterday.

You May Also Be Interested In

• Enovix Corporation (ENVX) PT Lowered to $5 at BofA Securities
• Candel Therapeutics Inc. (CADL) PT Raised to $15 at Freedom Broker
• BofA Securities Reiterates Buy Rating on Micron Technology (MU); Sees $230+ in EPS by FY30