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Cone Midstream’s Analyst Recommendations after Ratings Upgrade

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CNNX’s ratings update

Cone Midstream Partners (CNNX) is the midstream MLP jointly owned by Consol Energy (CNX) and Noble Energy (NBL) to provide natural gas gathering services in the Appalachian Basin. It has been upgraded by Wells Fargo from “market perform” to “outperform,” which is equivalent to a “buy.”

CNNX was upgraded after its strong 1Q17 earnings and Moody’s recent credit upgrade of Consol Energy to B1.

CNNX now has “buy” ratings from 50.0% of analysts surveyed by Reuters, while the remaining 50.0% rate it a “hold.” CNNX’s average target price of $24.80 implies a 16.9% price return from its current price of $21.10.

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CNNX’s stock performance

Cone Midstream Partners (CNNX) has fallen 9.9% YTD (year-to-date). In comparison, its peers Rice Midstream Partners (RMP) and Antero Midstream Partners (AM) have risen 2.5% and 10.5%, respectively. EQT Midstream Partners (EQM) has fallen 2.7%.

CNNX is currently trading at an analyst estimated forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 12.5x, which is slightly higher than the peer median multiple of 11.7x.

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