Mizuho Securities analyst Gabe Moreen has maintained their bullish stance on SUN stock, giving a Buy rating yesterday.
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Gabe Moreen has given his Buy rating due to a combination of factors including Sunoco’s strong fourth-quarter performance in 2024, particularly in the ‘Pipeline Systems’ sector, which exceeded expectations. This outperformance was attributed to higher volumes in SUN-ET’s Permian joint venture, better refinery utilization, and strong pipeline demand tied to agricultural needs. The strong results from ‘Pipeline Systems’ effectively offset the seasonal downturn experienced in ‘Fuel Distribution,’ illustrating the company’s ability to maintain stable cash flows through its diversified business model.
Additionally, Sunoco’s management remains optimistic about the company’s growth prospects, particularly through mergers and acquisitions, with an emphasis on expanding its presence in Europe and the Caribbean. The company has reiterated its guidance for fiscal year 2025, projecting an approximate 25% year-over-year increase in adjusted EBITDA, alongside a sustainable distribution growth target of at least 5%. These factors collectively support the positive outlook and justify the Buy rating for Sunoco’s stock.
According to TipRanks, Moreen is a top 100 analyst with an average return of 16.4% and a 78.18% success rate. Moreen covers the Energy sector, focusing on stocks such as Kinder Morgan, USA Compression, and Sunoco.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $64.00 price target.