UPDATE: JPMorgan Upgrades BP Midstream Partners LP. (BPMP) to Overweight
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JPMorgan analyst Jeremy Tonet upgraded BP Midstream Partners LP. (NYSE: BPMP) from Neutral to Overweight with a price target of $16.00 (from $14.00).
The analyst comments "BP (J.P. Morgan analyst Christyan Malek) represents a premier strategic sponsor. While BP possesses a significant potential dropdown pool, with capital markets challenged, small scale organic growth appears a greater focus at this time. Accordingly, BPMP continues to build cash and now possesses significant capacity on its balance sheet. As for stability, BPMP boasts premier leverage to Gulf of Mexico production, which generally possesses slower decline curves, as well as onshore pipelines predominately supporting BP’s Whiting Refinery. Additionally, MVCs back BPMP’s onshore assets, which tie into the Whiting Refinery. Almost two years ago in our initiation, we noted the consistent IDR pushback during the BPMP IPO process. While we suspect IDRs deter some investors, we see BPMP’s cash flow stability and financial flexibility offsetting IDR risk, driving our OW rating."
Shares of BP Midstream Partners LP. closed at $13.51 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Upgrades, Upgrades
Related EntitiesJPMorgan, IPO
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