Viper Energy Partners
Viper Energy Partners (VNOM) was the only MLP (master limited partnership) to see a rating update last week (ended December 1, 2017). This could be one of the reasons behind VNOM’s strong gains during the week.
You can check out the second part of this series for a discussion of the performance drivers of last week’s top MLP gainers. Notably, Enable Midstream Partners (ENBL) and Energy Transfer Equity (ETE) were among the MLPs that saw ratings changes during the previous week. (For details, read Market Realist’s “MLPs’ Rating Updates during the Week Ending November 24.”)
SunTrust Robinson Humphrey initiated coverage on Viper Energy Partners, a royalty interest owner MLP, with a “buy” rating. It assigned VNOM a target price of $20.
Now, 92% of the analysts surveyed by Reuters rate Viper Energy a “buy,” and the remaining 8% rate it as “hold.” VNOM’s average target price of $21.7 implies a ~12% upside potential from the current price levels.
For in-depth analysis of royalty interest MLPs, check out Market Realist’s series Comparing Royalty Interest Owner MLPs: VNOM and BSM.