Calumet Specialty Products downgraded at RBC

|About: Calumet Specialty Products ... (CLMT)|By:, SA News Editor

Calumet Specialty Products (CLMT -2.6%) is downgraded to Sector Perform from Outperform with a $31 target price, down from $36, at RBC Capital, which sees weak distribution coverage in 2013, exacerbated by high turnaround costs, and unlikely distribution growth in the near-term.

The firm thinks CLMT has liquidity to support sub-par distribution coverage, which should improve next year as projects come online and turnaround costs abate, but sees CLMT keeping a discount to MLP peers as the likelihood of growth remains limited.