Goldman Sachs Upgrades Summit Midstream Partners, LP (SMLP) to Buy

Goldman Sachs upgraded Summit Midstream Partners, LP (NYSE: SMLP) from Neutral to Buy with a price target of $52.00 (from $43.00).

Analyst Jerren Holder said, "We upgrade Summit Midstream Partners (SMLP) to Buy from Neutral, with 28% total return upside to our new $52, 12-month price target. We believe SMLP can generate years of above-average distribution growth primarily driven by accretive asset dropdowns. We see potential for further yield compression with the main catalyst being an expansion to the parent’s asset inventory. “Young” dropdown MLP peers on average trade at yields more than 100bp better and as much as 300bp lower for select peers. We forecast 14% distribution growth CAGR from 2013-2016 relative to our MLP average forecast of 8%, primarily driven by dropdown acquisitions."

For an analyst ratings summary and ratings history on Summit Midstream Partners, LP click here. For more ratings news on Summit Midstream Partners, LP click here.

Shares of Summit Midstream Partners, LP closed at $42.29 yesterday.

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