- Sunoco (SUN +1.5%) is resumed with an Equal Weight rating and $54 price target at Barclays, which says SUN benefits from relatively stable cash flows bolstered by long-term fee-based contracts for a significant portion of its business, consistent fuel margins and the support of its Energy Transfer Partners parent.
- The firm believes SUN is well-positioned to post 12.5% growth from a $4B-$4.5B dropdown inventory, organic capex and third-party acquisitions amid a fragmented end market, but that favorable growth prospects are somewhat reflected in SUN's price.