- NuStar Energy (NS +2.9%) is upgraded to Buy from Neutral with a $62 price target, up from $49, at Goldman Sachs as project-driven cash flow growth visibility improves throughout 2014.
- Following 10 consecutive quarters of no distribution growth, including nine in which distributions exceeded cash flow, Goldman believes fee-based growth driven by its Eagle Ford project backlog will put NS back on track for positive distribution coverage in H2 2014 and increases by mid-2015.
- The firm lowers earnings estimates for 2014 by 2.5% to $1.95 but raises 2015 and 2016 to $2.70 and $2.90 respectively.