Wells Fargo Starts American Midstream (AMID) at Outperform; Differentiated Strategy – Competing In A Less Crowded Market

Wells Fargo initiates coverage on American Midstream (NYSE: AMID) with an Outperform. PT range is $22-$24.

Wells analyst says, "The partnership offers investors a robust 9.0% yield with distribution growth potential tied to organic investments and acquisitions, which we believe are likely given AMID’s competitive advantages, which include its small size and differentiated strategy. We forecast a five-year distribution compound annual growth rate (CAGR) of 6.1%, which assumes $25 million per year of investments (a combination of acquisitions and organic investments) at an assumed EBITDA multiple of 6x."

For more ratings news on American Midstream click here and for the rating history of American Midstream click here.

Shares of American Midstream closed at $18.29 yesterday.

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