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Northern Tier Energy (NTI -8.5%) is downgraded to Hold from Buy at Deutsche Bank, which says...

Northern Tier Energy (NTI -8.5%) is downgraded to Hold from Buy at Deutsche Bank, which says that although excellent Q3 profitability implies cheap valuation, it sees a seasonal sequential decline in earnings in Q4 followed by typically weak Q1 and costly turnarounds, and the stock looks fully valued on a normalized mid-cycle distribution basis.
Comments (1)
  • iowaguy
    , contributor
    Comments (101) | Send Message
     
    I think the analyst at DB is wrong. Q4 is almost over, and the spreads have been just as good if not better than Q3. The company just released strong Q3 earnings, and a large (1.48) distribution for a partial quarter. The distribution for Q4 will likely be 2 bucks. Think about that -- roughly $3.48 for two quarters and the stock selling at 22.50? NTI is in a great location, in St. Paul, MN with close access to the Bakken as well as Canadian crude. I think this is a nice gem that many are overlooking. I am long NTI.
    15 Nov 2012, 02:54 AM Reply Like
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