UPDATE: UBS Starts EnLink Midstream Partners (ENLK) at Buy

(Updated - July 6, 2015 10:43 AM EDT)

UBS initiated coverage on EnLink Midstream Partners (NYSE: ENLK) with a Buy rating and a price target of $27. Analyst Shneur Z. Gershuni expects about 7% distribution CAGR over next three years.

"ENLK avenues of growth include organic development, organic growth with Devon, dropdowns and M&A. The relationship with Devon Energy (DVN) provides aligned interest through joint ownership and visibility for growth. ENLK has a peer leading portfolio of contracts with 95% fixed fee and only 5% commodity exposed. MVCs in North TX and OK provide stable cash flows by alleviating the impact of variable volume trends. Key themes driving organic growth includes: expansion of G&P footprint in high growth areas like the Permian, bolt-on NGL opportunities in LA tied to development of the petchem sector and LPG exports, as well as condensate & oil expansion in the Northeast. A strong capital structure and credit rating provide confidence that ENLK will be able to finance its development, even in tighter capital markets," said Gershuni.

For an analyst ratings summary and ratings history on EnLink Midstream Partners click here. For more ratings news on EnLink Midstream Partners click here.

Shares of EnLink Midstream Partners closed at $22.25 yesterday.

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