USDP - USD Partners: Full Price Recovery Coming Catalyst In Sight

• The unit price of USD Partners remains well below its level before the severe 2020 economic downturn but thankfully 2021 has been more positive with their distribution growth returning.
• They have ample free cash flow and a strong financial position to support much higher growth in the future.
• Based upon my discounted cash flow valuations, it appears that their intrinsic value is almost 70% higher than their current unit price if they continue growing their distributions.
• The possibility of management further increasing the rate of distribution growth could act as an additional catalyst to push their unit price even higher or expedite the recovery.
• Since this indicates that their unit price could keep recovering towards its level of late 2019 before the recent downturn, I believe that maintaining my bullish rating is appropriate.

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