Analyst ratings for Summit Midstream
In this article, we’ll look at what Wall Street analysts recommend for Summit Midstream Partners (SMLP). On a broader level, 50.0% of analysts rate Summit Midstream a “buy,” 40.0% rate it a “hold,” and the remaining 10.0% rate it a “sell.”
The above table shows recommendations for SMLP from some of the brokers surveyed. The high and low target prices for SMLP are $33 and $24, respectively. The median broker target price of $25 for SMLP implies an 8.5% price return in the next 12 months from its September 9 closing price of $23.1. SMLP’s peers Crestwood Equity Partners (CEQP) and Cone Midstream Partners (CNNX) have “hold” ratings from 77.8% and 50.0% of analysts surveyed by Bloomberg.
Outlook for Summit Midstream
Investors should consider the following positives and negatives before they decide to include SMLP as a long-term investment.
- strong distribution coverage
- increased 2016 EBITDA guidance
- assets diversified across multiple shale plays
- expected to benefit from Utica development in the long run
- highly leveraged
- fewer expansion opportunities
- declining throughput volumes in three out of five business segments
- exposure to natural gas prices through natural gas processing business
For more coverage on midstream companies, check out Market Realist’s Master Limited Partnerships page.