logo
  Join        Login             Stock Quote

Deutsche Bank Raises PT On Semgroup (SEMG) To $33, Rates "Hold" On Valuation

 March 29, 2012 01:17 PM


Deutsche Bank (DB) lifted its price target on shares of SemGroup Corp. (NYSE:SEMG) to $33 from $30 reflecting the increased visibility of the company's earnings and cash flows.

Curt Launer, an analyst at DB, rates SEMG "Hold" on valuation, although he assess its fundamental upside as building significant l/t value.

"New capacity at Cushing is on line and more is being added according to the plan SEMG described for this year. The benefits of the additional capacity are also seen in SEMG's 60 percent owned MLP Rose Rock Midstream (RRMS) which we rate Buy with a target price of $27 per unit," Launer wrote.

[Related -Ten Pipeline Stocks To Watch In 2013]

Launer continues to watch for additional speculative interest in SEMG based upon the bid made for the company by Plains All American (PAA) last fall. Although the $24 per share bid is significantly less than the current share price it remains outstanding and continually sparks peculation and to future moves by PAA or the involvement of other bidders. "Therefore, we consider a near-term risk for SEMG to be the removal of the speculation in some manner or form," the analyst wrote.

Tulsa, Oklahoma-based SemGroup is engaged in gathering, transportation, storage, distribution, blending, marketing, and other midstream services primarily to independent producers and refiners of petroleum products.

SEMG shares fell 1.01 percent to trade at $29.38 on Thursday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article image3 US Updates Show Ongoing Growth

Three economic updates today provide more evidence that moderate growth endures for the US. The numbers du read on...

article imageBuy These Solar Stocks Before They Snapback

Sometimes the market hands you a gift. And it would be foolish not to take it. Thanks to general market read on...

article imageInvestors Are Even More Euphoric And Confident.

As noted on the blog last Thursday, even though the market had been down for three straight weeks, last read on...

article imageThe Butterfly Machine

There’s a phenomenon called the Butterfly Effect. One common quotation is “It has been said that something read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.