UPDATE: Barclays Starts Antero Midstream Partners LP (AM) at Overweight

(Updated - December 1, 2014 12:16 PM EST)

Barclays initiated coverage on Antero Midstream Partners LP (NYSE: AM) with an Overweight rating and a price target of $34.00.

Analyst Helen Ryoo commented, "We forecast Antero Midstream Partners LP (AM) to grow distributions at a 4-year CAGR of 25%, which puts AM's growth among the fastest growing MLPs. While AM trades at 40 bps discount to MLPs with comparable growth (mainly drop down MLPs), our view is that AM's growth forecast has relatively low risk given contract structure (100% fee-based), high coverage (average 1.5x), AR's drilling economics (low crude price exposure), and balance sheet quality. AM came public with no debt and $200 mm of cash on its balance sheet, which gives them ample dry powder to execute a $550 mm/year organic capex program without issuing equity during our forecasted period. While our base case model does not assume a water drop down ($1.5 billion based on 10x 2015 EBITDA), or 3rd party project participations ($925 mm total opportunity), executing these deals could result in growth or coverage upside. It will also lead to an earlier than modeled capital raise, which should help AM's trading liquidity. Our price target is based on a 12-month distribution run-rate of $0.76 and target yield of 2.25% vs comp group yield of 2.05%."

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

Shares of American Greetings closed at $27.69 yesterday.

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