The company, which owns and operates a logistics business used to facilitate the purchase and sale of crude oil and refined products, has diversified its asset base and shows signs of sustainable growth, analysts said.
"Since 2011, Sunoco has broadened its footprint, diversified its asset base, and replaced acquisition-driven growth with organically sourced expansions," analysts said.
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"We believe its current assets and project inventory will underpin distribution growth through at least 2019 and note its strong relationship with Energy Transfer Partners LP (ETP) and early-mover logistical advantage," analysts added.
Shares of Sunoco are down 0.02% to $50.16.
Separately, TheStreet Ratings team rates SUNOCO LOGISTICS PARTNERS LP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNOCO LOGISTICS PARTNERS LP (SXL) 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."