Buoyed by a robust operating performance and favorable growth prospects, we are maintaining our Outperform recommendation on Sunoco Logistics Partners (NYSE:SXL - News). Recent results for Sunoco Logistics have been driven by strength in its crude pipeline system and terminals facilities.
Importantly, the partnership has grown its cash distribution for twenty-seven consecutive quarters. With its stable fee-based revenue, geographically-diverse assets and strong business fundamentals, Sunoco Logistics offers investors an opportunity to capture income growth through steadily-rising cash distributions and capital appreciation.
Therefore, we are confident of the partnership's total return potential. As such, we rate units of Sunoco Logistics as an attractive investment and maintain its Outperform recommendation. Our $45 price objective reflects a 2012 P/E multiple of 17.9x.
SUNOCO LOGISTIC (SXL): Free Stock Analysis Report
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