Credit Suisse Downgrades MarkWest Energy (MWE) to Neutral

Credit Suisse downgraded MarkWest Energy (NYSE: MWE) from Outperform to Neutral with a price target of $72.00 (from $81.00) on lowered guidance and a slower commodity price recovery.

Analyst J. Edwards comments, "MWE has lowered its EBITDA and DCF guidance to $925-975mm and $700-750mm, implying a $50mm cut to the high end of its prior guidance range. The guidance reduction follows a continued period of low commodity prices that is expected to impact MWE's volumes. It continues to budget $1.5-1.9Bn of growth capex for 2015 and $30mm to be spent on maintenance. Recall, at the time of announcement of the MPLX merger, we had suspected that the reason for a valuation of $78.64/unit compared to our $81 TP for MWE at that time, was the long term risk to MWE dist./unit guidance due to sustained commodity weakness. Given what appears to be a more prolonged weak commodity price environment becoming a higher probability, we have lowered our 2017-18 EBITDA estimates by 6% and are lowering our TP, by $9, to $72 and taking our rating down to Neutral."

For an analyst ratings summary and ratings history on MarkWest Energy click here. For more ratings news on MarkWest Energy click here.

Shares of MarkWest Energy closed at $55.07 yesterday.

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