- Sunoco (SUN -0.9%) is maintained with an Overweight rating and $48 price target at J.P. Morgan, which identifies the company as its “top defensive pick for an era of low gasoline prices."
- J.P. Morgan thinks SUN’s Q1 stock performance was soft in part due to the uncertainty clouding the other Energy Transfer entities - which could continue until the completion of the proposed ETE-WMB merger - but volatility will fade over time “as investors gain appreciation for the wide separation between SUN and the rest of the Energy Transfer family."
- The firm recommends purchasing units on volatility-driven weakness, as SUN is poised to benefit from $6B-plus in investments made over the last 18 months.
- Now read Energy Transfer says it's not selling controlling interest in Sunoco