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What Do Analysts Recommend for USA Compression Partners?

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Wall Street’s targets for USAC

Of the analysts surveyed by Bloomberg, 50% rate USA Compression Partners (USAC) a “buy,” and 50% rate it a “hold.” None of the analysts recommended a “sell” for USAC. The consensus target price for USA Compression Partners is $22.6. Currently, the MLP is trading at $16.0. If the MLP reaches this target price within a year, it would mean a 41% return for investors.

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Individual ratings

The above table shows some of the individual ratings for USA Compression Partners. Below is a summary of some of the key ratings:

  • Ladenburg Thalmann & Co is the most optimistic about USA Compression Partners. It has given the MLP a “strong buy” rating with a target price of $29. This target implies an upside of 81% in USAC based on its current price.
  • RBC Capital Markets has also provided a “strong buy” rating to USA Compression Partners with a target price of $23. This target implies an upside of 44% based on its current price. This target is closest to the consensus price target for the MLP.
  • Goldman Sachs (GS) and UBS (UBS) both gave a target price of $21 for USAC. This would mean an upside of 31% from its current price.
  • Barclays (BCS) is most pessimistic about USAC. It has given the MLP a “hold” recommendation with a target price of $20. This target would still imply a 25% return from USAC’s current price.

USAC’s operational metrics and distributable cash flows have shown consistent growth since its listing. The MLP’s performance is not directly dependent on commodity prices. It has raised distributions consecutively in every quarter since its listing. These factors may have contributed to the analysts’ “buy” and “hold” recommendations for the MLP. USAC forms 2.5% of the Yorkville High Income MLP ETF (YMLP).

Peer ratings

Exterran Partners (EXLP) has a “buy” rating from 40% of analysts, while 60% of the analysts rate it a “hold.” Of the analysts surveyed, 63% rate CSI Compressco (CCLP) a “buy,” while 25% rate it a “hold.”

Cypress Energy Partners (CELP) has a “buy” rating from 67% of the analysts, while 17% rate it a “hold.” EXLP forms 0.8% of the Multi-Asset Diversified Income Index Fund (MDIV).

Read our series High-Return Refining MLPs: The 4 Investors Should Watch to learn about some more outperforming MLPs in the struggling energy sector.

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