SUN - Sunoco: Reaching A Junction With Unit Price Now At 5-Year Highs

• Sunoco has seen their unit price rally quite strongly since plunging during early 2020 with it now at a five-year high, thereby leaving them at a junction.
• Whilst their long-term future was less important last year, the higher the price investors are paying for their units, the more important their long-term outlook becomes.
• Since they are a fuel distributor, they are staring right into the face of the clean energy transition with management sticking by their traditional operations for the time being.
• If they manage to successfully navigate this transition towards the end of this decade, their intrinsic value appears upwards of 20% higher, but on the flip side, if this fails, it appears at least 20% lower.
• Since their unit price has rallied quite strongly since first assigning a bullish rating and following this analysis, I now believe that downgrading my rating to neutral is appropriate.

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