NuStar Energy upped to Neutral at Credit Suisse following 8% pullback

|About: NuStar Energy L.P. (NS)|By:, SA News Editor

NuStar Energy (NYSE:NS) is upgraded to Neutral from Underperform with a $53 price target at Credit Suisse following the 8% pullback prompted by this week's $1.5B deal for Navigator Energy, which included a 12.5M-unit offering that raised $579M.

Credit Suisse estimates the acquisition is dilutive to distributable cash flow for 2017 and 2018 but believe the company’s entry into the Permian transforms NS from an MLP lacking distribution growth visibility to an MLP with growth visibility, even if it is two years away.

The firm leaves its rating for NuStar Group Holdings (NYSE:NSH), which holds a GP and LP interest in NS, at Underperform.