NuStar Energy upgraded to Overweight from Neutral at JPMorgan JPMorgan upgraded NuStar Energy citing valuation and expectations the company's divestitures will drive improved investor sentiment. The firm raised its price target for shares to $60 from $51.
NuStar Energy sees Q1 EPS 40c-50c, consensus 47c Says market conditions have continued to "falter" since end of Q3. Says Eagle Ford portion of business is "small slice" of total business. Says other pipeline assets should continue to perform well in FY16. Says Eagle Ford throughput should be slightly above expected volumes in FY16. Says storage segment should perform well in FY16. Says has no plans to cut distribution now or in "foreseeable future." Sees Q1 distributable cash flow $1.00-$1.10. Sees Q1 SG&A expense $26M-$28M. Sees oil markets to remain volatile for the foreseeable future. Comments taken from Q4 earnings conference call. In morning trading, NuStar shares rallied 7.66% to $32.88.