Last Week’s MLP Ratings Updates

CVR Refining

CVR Refining (CVRR), a downstream MLP involved in crude oil refining and refined products marketing, saw ratings updates and target price revisions from Barclays and UBS last week. Barclays raised CVRR to “equal weight” from “underweight” and increased its target price to $14 from $13. UBS, on the other hand, downgraded CVRR to “sell” from “neutral,” which is equivalent to “hold.” However, UBS increased CVRR’s target price to $10.5 from $8.5. Now, 75% of analysts surveyed by Reuters rate CVRR as “hold,” 12.5% rate it a “buy,” and the remaining 12.5% rate it a “sell.” CVRR’s average target price of $12.3 implies ~4% upside potential from the current price levels.

Last Week’s MLP Ratings Updates

Shell Midstream Partners

Shell Midstream Partners (SHLX), the midstream MLP formed by Royal Dutch Shell (RDS-A) to provide liquids transportation, terminaling, and storage services, saw one analyst rating update and one target price revision last week. Evercore resumed coverage on SHLX with an “outperform” rating, which is equivalent to “buy,” and assigned a target price of $36. However, Barclays reduced SHLX’s target price to $29 from $30. Now, 70.0% of analysts surveyed by Reuters rate SHLX a “buy” and the remaining 30.0% rate it a “hold.” SHLX is currently trading below the low range ($29) of analysts’ target price. SHLX’s average target price of $33.4 implies ~27% upside potential from the current price levels.

EQT Midstream Partners

J.P. Morgan cut EQT Midstream Partners’ (EQM) target price to $91 from $97 last week. The Appalachian Basin–based midstream MLP has a “buy” rating from 85.7% of analysts as of November 17 while the remaining 14.3% rate it a “hold.” Seaport Global last initiated coverage on EQM with a “buy” rating. Overall, the partnership has seen three ratings updates in 2017 to date, including two new coverages and one upgrade. EQM is currently trading significantly below the low range ($83) of analysts’ target price. EQM’s average target price of $91 implies ~33% upside potential from the current price levels.

EnLink Midstream LLC

Goldman Sachs initiated coverage on EnLink Midstream LLC (ENLC), the GP (general partner) of EnLink Midstream Partners (ENLK), last week. It assigned ENLC a “neutral” rating with a target price of $17. Now, 80% of analysts rate ENLC a “hold” and the remaining 20% rate it a “buy.” ENLC’s average target price of $18.2 implies ~16% upside potential from the current price levels.

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