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Bear of the Day: NuStar Energy (NS)
by Zacks Equity ResearchNovember 30, 2012 | Comments : 0 Recommended this article: (0)
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Though we welcome the partnership s decision to sell a 50% stake in its volatile asphalt operations, the continued poor outlook for the sector will be a further drag on NuStar's near-to-medium term EBITDA. We are also concerned by the partnerships high leverage. Considering these headwinds, we expect NuStar to perform below the industry, which gives investors little reason to hold the stock.
This is corroborated by our new Underperform recommendation. Our $40 price objective reflects a 2013 P/E multiple of 17.7x.
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