Benchmark Co. Downgrades Susser Petroleum Partners to Hold (SUSP)

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Susser Petroleum Partners (NASDAQ:SUSP) was downgraded by Benchmark Co. from a “buy” rating to a “hold” rating in a research note issued on Wednesday, TheFlyOnTheWall.com reports. They currently have a $47.00 price target on the stock. Benchmark Co.’s target price suggests a potential upside of 1.93% from the company’s current price.

The analysts wrote, “We have downgraded shares of Susser Petroleum Partners to Hold from Buy, as the price per unit has exceeded our price target and as it is still unclear as to how much Susser Petroleum Partners will pay for the assets of Susser Holdings and Sunoco retail and wholesale operations. “As part of the recently announced acquisition of Susser Holdings (SUSS) by Energy Transfer Partners (ETP), the Company will begin to accelerate its drop downs. Petroleum Partners will purchase all of the Susser Holdings retail operations and all of the Sunoco retail and wholesale operations from Energy Transfer Partners for cash and units, not presently in our model. It is still unclear as to the value and or multiple it will pay for the assets and how many shares will be issued. We believe that Energy Transfer Partners, who will own over 50% interest of SUSP, and its affiliated Energy Transfer Equity, which will own SUSP’s GP, will want to ramp up distributions as quickly as possible, especially from its current conservative 1.27 distribution coverage ratio. “We are concerned, though, with Energy Transfer Partners gaining control of Susser Petroleum Partners, value could be transferred from Susser Petroleum unit holders to Energy Transfer Partners unit holders, if Energy Transfer Partners charges too much for the assets that Susser Petroleum will acquire. Until we get more clarity, we have moved to the sidelines with a Hold rating, and we maintain our price target of $47.”

A number of other firms have also recently commented on SUSP. Analysts at Macquarie downgraded shares of Susser Petroleum Partners from an “outperform” rating to a “neutral” rating in a research note on Thursday, May 8th. They now have a $40.00 price target on the stock. Analysts at Janney Montgomery Scott upgraded shares of Susser Petroleum Partners from a “neutral” rating to a “buy” rating in a research note on Monday, April 28th. They now have a $40.00 price target on the stock, up previously from $38.00. Three analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Susser Petroleum Partners currently has an average rating of “Buy” and a consensus target price of $38.56.

Susser Petroleum Partners (NASDAQ:SUSP) opened at 46.11 on Wednesday. Susser Petroleum Partners has a 52 week low of $26.80 and a 52 week high of $47.93. The stock’s 50-day moving average is $43.26 and its 200-day moving average is $36.63. The company has a market cap of $1.013 billion and a P/E ratio of 26.46.

Susser Petroleum Partners (NASDAQ:SUSP) last posted its quarterly earnings results on Wednesday, May 7th. The company reported $0.46 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.47 by $0.01. The company had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter last year, the company posted $0.38 earnings per share. Susser Petroleum Partners’s revenue was up 11.6% compared to the same quarter last year. On average, analysts predict that Susser Petroleum Partners will post $2.11 earnings per share for the current fiscal year.

Susser Petroleum Partners LP is primarily engaged in fee-based wholesale distribution of motor fuels to Susser Holdings Corporation (NASDAQ:SUSP) and third parties.

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