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 imageSolar and Biotechnology Stocks Rally as Rational Exuberance Dominates

Solar stocks are rallying due to positive earnings and deals. Biotechnology stocks are also rallying due to read on...

article imageA Hefty Upside Surprise For February Payrolls

Private payrolls increased substantially more than expected in February, delivering an encouraging dose of read on...

article imageWarren Buffett’s Stellar Record In Defying Economic Gravity

One of the more intriguing observations in Berkshire Hathaway’s new letter to shareholders is Warren read on...

article imageDebate Around the 2015 Rate Hike Intensifies

Following Janet Yellen's Senate Banking Committee testimony, the Fed seems to be quite deliberate in 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.