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What Analysts Recommend for Summit Midstream Partners

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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.

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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.

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