Wells Fargo Initiates Coverage on Chesapeake Midstream Partners (CHKM); Low-Risk Profile/Robust Growth Prospects Appear Fairly Reflected

September 10, 2010 8:40 AM EDT
Get Alerts CHKM Hot Sheet
Price: $28.46 --0%

Rating Summary:
    11 Buy, 3 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 9
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Wells Fargo initiates coverage on Chesapeake Midstream Partners, L.P. (Nasdaq: CHKM) with a Market Perform rating.

Wells analyst says, "CHKM has 100% fee-based cash flow and visible growth prospects tied to its GP's drilling plans and potential drop-down opportunities. We forecast a five-year distribution compound annual growth rate (CAGR) of 9.3%, assuming average annual (1) acquisitions of $300 million and (2) growth capex of $510 million. However, CHKM's attractive attributes and above-average growth profile appear fairly reflected in the current valuation, in our view. Approximately 80% of CHKM's distribution is tax deferred."

To see all the upgrades/downgrades on shares of CHKM, visit our Analyst Ratings page.

Shares fell $0.15 yesterday to close at $25.15.

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