Magellan Midstream started at Buy at DA Davidson

• Magellan Midstream Partners (MMP +1.6%) is initiated with a Buy rating and $85 price target at DA Davidson, which notes the company is still in the midst of a capex expansion program that started in 2013 and is on track to exceed $850M this year before moderating to ~$700M in 2016.
• The addition of the Saddlehorn pipeline project enhanced the backlog, and MMP has consistently identified ~$500M of smaller projects that should positively impact results, often with lower risk, the firm says; expanding marine infrastructure exposure also likely will be a focus over the next few years.