Credit Suisse maintained Outperform and upped price target to $68.
MMP has been absolute solid core for me since the moment MMP announced the plan to acquire its GP. Credit Suisse, Merrill and a few other analyst firms questioned the high purchase price which was only 11x ebitda saying it would be better to acquire assets at 9x ebitda. Analysts have to be dumber than box of rocks not seeing the impact of no more IDRs forever..... in retrospect 11x was a steal; BPL paid 26x because they waited too long to buy their GP. I took advantage of the selloff to get a full core position I hold long and strong.
I have watched Credit Suisse upgrade and downgrade several times based on quarter to quarter performance. These analysts should be looking at the business model and make long term calls. So many people knee-jerk sell on one bad quarter's performance. I am hear to tell you real wealth in made when you believe in a business model and hold long and strong. Of course my attitude is bad for the wall street money machine that depends on the creation of volatility in order to prosper for themselves.
Me,too. I recall very well when MMP bought out the GP...I bought more units at that time,too. Combining IDR elimination with a solid business strategy makes for a big winner in my opinion. When you see how MMP has woven together the BP assets bought in Cushing and Houston together with Longhorn and the Plains assets to put together a formidable pipeline network you recognize that mgmt is really,really important. I expect to hand this investment over to the grand kids decades from now!