NEW YORK (AP) -- Despite nearly two years of strong growth since going public, Oiltanking Partners LP has yet more room to grow, according to Citi, which raised its price target on the petroleum storage company by $10 Thursday.
Since its initial public offering in July 2011, Oiltanking Partners units have more than doubled. So far this year, the units, or shares, have risen about 27 percent.
Citi analyst John Tysseland expects the company's terminal along the Houston ship channel to get a boost from increased exports of propane/butane and huge pipeline expansions this year. That should lift revenue and renewal rates and provide new opportunities to expand.
Tysseland expects Oiltanking to complete its $270 million crude oil terminal expansion over the next few years, which should fatten returns for investors.
Tysseland backed his "Buy" rating for the Houston partnership and increased his price target to $53.50.