Why Magellan Midstream Partners, L.P. (MMP) have been downgraded?

Magellan Midstream Partners, L.P. (NYSE:MMP) received a stock rating downgrade from Wunderlich on Apr-04-16. In a note to investors, the firm issued a Hold rating and also issued the target price on the stock of $68. The analysts previously had a Buyr ating on the stock.

Analysts have a consensus target price of $ 76.31 in the 12-month period. The price objective is 17.20% higher than the recent closing price of $ 65.11. The 52-week price range is $ 53.71 – 82.53 and the company has a market capitalization of $ 15.17B. Analysts covering the shares maintain a consensus Strong Buy rating, according to Zacks Investment Research. zero analyst has rated the stock with a sell rating, 3 has assigned a hold rating, 2 says it’s a buy, and 8 have assigned a strong buy rating to the company.

Magellan Midstream Partners, L.P. (MMP) and TransMontaigne Partners L.P. (TLP) announced on April 4, 2016 they are jointly assessing the development of a new refined products pipeline in South Texas.

The potential project would include construction of an approximately 150-mile, 16-inch diameter pipeline capable of transporting 150,000 barrels per day (bpd) of gasoline, diesel fuel, propane and condensate from Magellan’s Corpus Christi, Texas terminal to TransMontaigne’s Brownsville, Texas terminal to meet market demand in Brownsville and other South Texas markets or for ultimate delivery to Mexico via truck, rail or connections to pipelines owned by TransMontaigne and third parties. If warranted by additional demand, the pipeline capacity could be expanded to 250,000 bpd.

Subject to receipt of necessary permits, regulatory approvals and sufficient customer demand, the potential pipeline could be operational by the end of 2018.

Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. It operates through Refined Products, Crude Oil, and Marine Storage segments. The company operates refined products pipeline that transports gasoline, distillates, aviation fuels, and liquefied petroleum gases for independent and integrated oil companies, wholesalers, retailers, traders, railroads, airlines, and regional farm cooperatives; leases pipeline and storage tank capacity to shippers; and provides services, including terminalling, ethanol and biodiesel unloading and loading, additive injection, custom blending, laboratory testing, and data services. It also owns and operates crude oil pipelines and storage facilities; and marine terminals located along coastal waterways that provide distribution, storage, blending, inventory management, and additive injection services for refiners, marketers, traders, and other end users of petroleum products.

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