Credit Suisse Upgrades Summit Midstream Partners, LP (SMLP) to Outperform
- Top 10 News for 10/24 - 10/28: AT&T (T), Time Warner Make it Official; Margins Hamper Apple's Q4; Mergers Aplenty
- Wall St. falls as FBI to review more Clinton emails
- Clinton email problem resurfaces as FBI announces review
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Credit Suisse upgraded Summit Midstream Partners, LP (NYSE: SMLP) from Neutral to Outperform with a price target of $30.00 (from $27.00), saying more growth is coming.
Analyst John Edwards commented, "SMLP's updated 2016 EBITDA guidance midpoint of $280mm was 6% above 2016 Street estimates (as of 8/4). Given SMLP's 7% beat in the quarter vs. consensus, we believe the Street will have to come up and we continue to believe estimates have baked in far too much conservatism for SMLP's Utica footprint where they stand to benefit from expected growth of both wet gas and dry gas production. Minimum volume commitments continue to support cash flows through this period of declining volumes in the Marcellus, Piceance and Barnett and counter party risk to these MVCs remains negligible. We are essentially holding our estimates which assume the Utica's EBITDA contribution climbs from ~25% of total EBITDA in 2016 to ~44% in 2019. Our target price increases to $30, from $27, as we roll our valuation models to 2017 which implies a ~47% total return which is supportive of an Outperform rating."
Shares of Summit Midstream Partners, LP closed at $22.55 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Oppenheimer Upgrades Twitter, Inc. (TWTR) to Perform
- H.C. Wainwright Downgrades Agenus Inc. (AGEN) to Neutral
- BMO Capital Upgrades Qualcomm (QCOM) to Market Perform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Upgrades
Related EntitiesCredit Suisse, Raising Prices
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!