Holly Energy Partners: Credit Suisse raises to outperform

Holly Energy Partners LP

10/11/2020 10:47

** Credit Suisse (CS) upgrades energy transportation
services co  HEP.N  to "outperform" from "neutral", citing its
top-quartile free cash flow (FCF) yield
    ** CS forecasts over 25% FCF yield through 2024, among the
highest under the companies it covers
    ** Says HEP's assets support consistent and meaningful FCF
generation over the near and medium term
    ** Also says global refining capacity is undergoing a
recession-like rationalization, which may ultimately result in a
healthier landscape for remaining operators - CS
    ** Expects HEP to benefit from improved refining sentiment
when that inflection occurs
    ** Eight brokerages covering the stock rate it "buy" or
higher, their median PT is $18
    ** Stock down ~49% YTD, as of last close 

 (Reporting by Arundhati Sarkar in Bengaluru)
 ((Arundhati.Sarkar@thomsonreuters.com;
twitter.com/Arundhati_05; +1 646 223 8780 Ext: 2776))