UPDATE: Raymond James Upgrades EnLink Midstream, LLC (ENLC) to Outperform

June 14, 2021 3:43 AM EDT
Get Alerts ENLC Hot Sheet
Price: $5.63 +0.90%

Rating Summary:
    4 Buy, 14 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 12 | New: 23
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(Updated - June 14, 2021 7:24 AM EDT)

Raymond James analyst J.R. Weston upgraded EnLink Midstream, LLC (NYSE: ENLC) from Market Perform to Outperform with a price target of $7.50.

The analyst comments "ENLC has already seen a nice move of late on its upward revision to 2021 EBITDA guidance (the low end of which was above even our Street high estimates coming out of earnings season). However, we think there’s more room to run due to the combination of upstream activity improvements in 2021 and ENLC’s “stealth” (often forgotten) NGL price exposure via Midland basin POP G&P contracts (and to a lesser extent Oklahoma, as well). In terms of valuation, ENLC's recent strong performance has largely mirrored its improved 2021 EBITDA guidance, in our view - the stock still only trades at just under ~8x 2022E EV/EBITDA. We think ENLC should be able to narrow the valuation gap relative to mid-cap midstream at ~8.5x in a better operating environment - and the company's financial/valuation leverage suggests it will have more upside relative to peers if the broader group multiple moves higher. In other words, ENLC isn't quite the "thematic" play of DCP, but the "numbers" actually suggest even less resistance for the stock moving higher - justifying the rating change."

For an analyst ratings summary and ratings history on EnLink Midstream, LLC click here. For more ratings news on EnLink Midstream, LLC click here.

Shares of EnLink Midstream, LLC closed at $6.25 yesterday.

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