Citi Initiates Coverage on Sunoco (SUN) with a Buy Rating

Core Insights - Sunoco LP (NYSE:SUN) is recognized as one of the 15 Extreme Dividend Stocks to Buy According to Hedge Funds [1] - Citi initiated coverage on Sunoco with a Buy rating and a price target of $65, highlighting the company's ability to triple its EBITDA despite declining gasoline demand since 2018 [2] Financial Performance - In Q3 2025, Sunoco reported revenue of $6.03 billion, a nearly 5% increase year-over-year, exceeding analysts' estimates by $284 million [4] - The company completed a $9 billion acquisition of Parkland Corporation, creating the largest independent fuel distributor in the Americas, with a pro forma adjusted EBITDA of over $3 billion in the past year [3] - The acquisition is expected to deliver over $250 million in synergies by 2028 and result in more than 10% accretion [3] - Sunoco raised its quarterly distribution by 1.25% and aims for at least 5% distribution growth in 2025 [4] Business Operations - Sunoco operates as a major energy infrastructure and fuel distribution master limited partnership, serving 32 countries and territories across North America, the Greater Caribbean, and Europe [5]