NuStar Energy initiated with a Neutral at Citi

Citi analyst Douglas Irwin initiated coverage of NuStar Energy with a Neutral rating and $17 price target. The analyst says the company offers leverage to both Permian production growth and Corpus Christi export markets along with an ammonia system and West Coast renewables business that present unique low carbon expos. In the near-term, expect excess cash flow to be directed toward debt reduction, which could limit near-term growth opportunities and prevent incremental capital returns, the analyst tells investors in a research note.