UBS Upgrades American Midstream (AMID) to Buy

UBS upgraded American Midstream (NYSE: AMID) from Neutral to Buy with a price target of $14.00 (from $5.00).

Analyst Shneur Gershuni commented, "AMID announced the acquisition of interests in midstream assets in the Gulf of Mexico for roughly $225MM at the ~6x multiple. Additionally, it announced DPU cut by ~13% to its MQD level. As a result, we now expect 2016 leverage (net debt/NTM EBITDA) of 4.6x, vs. previous estimate of 4.9x, and estimate 2016 coverage of ~1.40x. We believe that the improved balance sheet as well as continued strong support from ArcLight better positions AMID for a "lower for longer" environment and thus we are upgrading AMID to Buy."

For an analyst ratings summary and ratings history on American Midstream click here. For more ratings news on American Midstream click here.

Shares of American Midstream closed at $12.43 yesterday.

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