
What Analysts Recommend for Summit Midstream Partners
By Kurt GallonUpdated
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.
Positives
- strong distribution coverage
- increased 2016 EBITDA guidance
- assets diversified across multiple shale plays
- expected to benefit from Utica development in the long run
Negatives
- 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.