UPDATE: UBS Upgrades American Midstream (AMID) to Neutral

(Updated - August 12, 2015 9:04 AM EDT)

UBS upgraded American Midstream (NYSE: AMID) from Sell to Neutral with a price target of $13 (from $10). Analyst Shneur Z. Gershuni noted higher expected distribution growth due to Delta House dropdown.

"AMID announced a dropdown of 25% of ArcLight's 51.7% interest in Delta House (floating production system) expected to close by year end. The value of the drop is guided to be ~$162MM at 5x multiple and mgmt expects to increase annual DPU growth to 5% post closing. This news offsets the delay of the Republic Midstream Dropdown which was pushed to 2016 due to construction delays and revisions to producer drilling programs. In addition, mgmt noted Republic dropdown will be smaller than previously estimated," said Gershuni.

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

Shares of American Midstream closed at $14.39 yesterday.

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