Wells Fargo Securities has begun covering the limited partner interests of Delek Logistics with an 'outperform' rating and a price target range of $25 to $28. Delek Logistics was spun out of Delek US Holdings last month at $21 per share but hasn't done much since. Wells analysts say the company (Ticker: DKL) should be able to generate earnings growth averaging 11 percent a year through 2017.
Avondale Partners analyst Fred Lowrance says investors could do a lot worse than buying Ryman Hospitality Properties shares now that it looks like the company will next year sport a dividend yield of about 6.5 percent. On top of that, he says, bringing the muscle of Marriott's sales group to the Gaylord family of hotels should boost cash flows back to Ryman. "We thus feel comfortable arguing that RHP should trade much closer to where peers have historically," he wrote clients this week.
Ryman shares (Ticker: RHP) have climbed more than 10 percent to about $37 since the company paid out its big one-time dividend last month. Lowrance sees them going to $49, up from his previous target of $48.
The newly listed partner interests of Delek Logistics had a solid first day Friday, climbing more than 6 percent from their $21 opening price. They were up more than 10 percent for most of the day, but some late profit-taking drove them down to $22.35. Click here for our other coverage of Delek Logistics' IPO.
Nonpartisan think thank The Beacon Center of Tennessee has released a report that assesses the gas tax and the benefits and disadvantages of nine alternative funding mechanisms.
Titled There’s More than One Way to Pave a Road, the reviews numerous alternatives being considered by states across the country as means to construct and maintain transportation infrastructure.
The nine alternative funding mechanisms include the following:
• Public-Private Partnerships
• Vehicle Miles Traveled Taxes
• Tax Increment Financing
• Toll Roads
• Vehicle Weight-Mile Taxes
• State Infrastructure Banks
• Emissions Taxes
• Mass Transit
• Debt Financing
“Some of the funding options we reviewed lead in the right direction by placing transportation costs more directly on drivers themselves and reducing the overall tax burden on residents, while others move away from this free market principle,” Beacon Senior Fellow Dr. Paul Stumb, the report’s lead author, said in a release. “It’s important for Tennessee policymakers to scrutinize all the alternatives and choose a path that will lead to sustainable transportation funding without unduly burdening existing and future taxpayers.”
The report (read it here) will be provided to all 132 state lawmakers and key members of Gov. Bill Haslam’s administration.
POSTDATA: WARRANTY DEEDS