SUN - NuStar: Upside Remains After Sunoco Acquisition
2024-01-22 11:59:33 ET
Summary
- NuStar Energy L.P. shares rallied over 12% after Sunoco announced an acquisition.
- The deal offers NuStar holders a 32% premium based on Friday's closing price, though this is closer to 20% after Sunoco's price fall.
- Limited antitrust risk and improved financial profile are expected from the deal.
- With 10+% return potential, I would be a buyer of NuStar even after this pop.
Shares of NuStar Energy L.P. ( NS ) rallied over 12% on Monday after news broke that Sunoco LP ( SUN ) would be acquiring the MLP. After lagging the market over the past year, shares now have provided a more respectable 20% return for investors over the past year, with a dividend yield that is near 9%....
NuStar: Upside Remains After Sunoco Acquisition