Sunoco: Buy for Distribution Growth; IDR Headwinds Are Manageable
Sunoco L.P. is positioned to grow its distribution at least 5% in 2026 backed by $600M+ growth capex and $3.1-$3.3B adjusted EBITDA guidance. Valuation is reasonable with a $9.81B market cap, $17.79B enterprise value and an EV/EBITDA of ~11.1. I recommend a long trade to capture distribution and re-rating potential, with tight risk controls to navi…