Update (9:44 a.m.): Updated with Tuesday market open information.
NEW YORK (TheStreet) -- Barclays increased its price target on Buckeye Partners (BPL - Get Report) to $78 and set an "equal weight" rating. Expected contributions from Hess terminal integration process and organic projects drove the firm's decision.
The stock was up 0.29% to $79.10 at 9:43 a.m. on Tuesday.
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Separately, TheStreet Ratings team rates BUCKEYE PARTNERS LP as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BUCKEYE PARTNERS LP (BPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, reasonable valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 0.2%. Since the same quarter one year prior, revenues rose by 44.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BUCKEYE PARTNERS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BUCKEYE PARTNERS LP increased its bottom line by earning $3.23 versus $2.31 in the prior year. This year, the market expects an improvement in earnings ($3.82 versus $3.23).
- Net operating cash flow has slightly increased to $100.09 million or 6.88% when compared to the same quarter last year. In addition, BUCKEYE PARTNERS LP has also modestly surpassed the industry average cash flow growth rate of 5.61%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: BPL Ratings Report