Morgan Stanley analyst Robert Kad lowered the price target on Hess Midstream Partners LP (NYSE: HESM) to $30.00 (from $39.00) while maintaining a Underweight rating.

The analyst comments "We remain Underweight-rated, with our price target implying 2.9% one-year total return upside (including a 9.9% distribution yield). To become more positive on the stock, we would likely need to see indicators of growth acceleration through higher oil prices that would incent new producer drilling activity in either basin or M&A that is accretive to longer-term growth. In the absence of growth execution, we expect that HESM will likely need to trade at a fairly pronounced discount to the broader midstream sector (particularly on a dividend yield basis) to attract capital inflows supportive of relative outperformance. Our DCF, which uses a Bloomberg- adjusted beta of 1.04, equity cost of capital of 13.98% and WACC of 9.87%, implies an 8.4x 2027e EV/EBITDA multiple at fair value."