UPDATE: Credit Suisse Downgrades MPLX LP (MPLX) to Neutral

(updating comment)

Credit Suisse analyst Spiro Dounis downgraded MPLX LP (NYSE: MPLX) from Outperform to Neutral with a price target of $25.00 (from $29.00).

The analyst comments "We downgrade MPLX to Neutral from Outperform owing to an accumulation of headwinds that balances the risk/reward tradeoff. First, we believe the strategic review may be dilutive to MPLX for the benefit of MPC. See our report Quantifying MPLX Strategic Review Downside where we quantify the risk of a $1.4bln unwind of dropped Logistics & Supply (L&S) assets back to MPC. Second, several major Northeast counterparties have seen their credit ratings downgraded which could trigger customer liquidity events. Third, the steep decline in natural gas prices now has producers guiding to lower/no growth scenarios. Finally, we don’t expect widespread asset sales in the current market, as we believe the bid-ask spread is too wide. Accordingly, reducing leverage could take time."

For an analyst ratings summary and ratings history on MPLX LP click here. For more ratings news on MPLX LP click here.

Shares of MPLX LP closed at $23.00 yesterday.

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Indigo Paints (INDIGOPN:IN) PT Raised to INR1,300 at ICICI Securities
• Apollo Hospitals (APLH:IN) PT Raised to INR8,500 at ICICI Securities