Sunoco (SUN) Receives an Upgrade from Wells Fargo

Sunoco LP (NYSE:SUN) is included among the 11 Best High Yield Energy Stocks to Buy Now.

Sunoco (SUN) Receives an Upgrade from Wells Fargo

Sunoco LP (NYSE:SUN) is a leading operator of critical energy infrastructure and the largest independent fuel distributor in North America.

Sunoco LP (NYSE:SUN) received a boost on October 29 when Wells Fargo analyst Ned Baramov upgraded the stock from Equal Weight to Overweight, while also increasing its price target from $61 to $65. The adjustment comes on the back of the compelling pro-forma valuation and to reflect the pending close of the Parkland merger. The analyst expects the company’s free cash flow profile to improve materially post-deal and sees further upside from additional synergies.

Sunoco LP (NYSE:SUN) announced in October that its proposed takeover of fuel retailer and refiner Parkland has been approved by the Canadian government. The deal, worth around $9.1 billion, is expected to significantly expand the company’s footprint in Canada and solidify its position in the fuel distribution market across North America. Sunoco expects the transaction to close on October 31, subject to the satisfaction or waiver of customary closing conditions.

Sunoco LP (NYSE:SUN) increased its dividend by 1.3% to $0.9202 per share on October 20. The company boasts an annual dividend yield of 7.05% as of the writing of this piece.

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Disclosure: None.