MLP rating updates
So far in this series, we have discussed the performance of the broader MLP sector, the top MLP gainers, and the top MLP losers in the week ending April 13, 2018. In this part, we’ll discuss the MLP rating updates last week.
Overall, 11 MLPs saw a rating update last week. Five of the MLPs were from Seaport Global Securities. Last week, Seaport Global Securities’ MLP rating updates included:
- Western Gas Partners (WES): downgraded to “neutral,” which is equivalent to “hold,” from “buy”
- Western Gas Equity Partners (WGP): downgraded to “neutral” from “buy”
- EQT Midstream Partners (EQM): upgraded to “buy” from “neutral” with a target price cut to $67 from $70
- EQT GP Holdings (EQGP): upgraded to “buy” from “neutral” with a target price cut to $26 from $27
- Antero Midstream Partners (AM): downgraded to “neutral” from “buy” with target price cut to $27 from $37
Credit Suisse initiated coverage on CVR Refining (CVRR) with a “neutral” rating and assigned a target price of $14. Now, 100% of the analysts surveyed by Reuters rate CVR Refining as a “hold.” Currently, CVR Refining is trading above its average target price of $14.6.
Plains All American Pipeline
Plains All American Pipeline (PAA) and its GP (general partner) Plains GP Holdings (PAGP) were upgraded by Suntrust Robinson last week. Suntrust Robinson raised Plains All American Pipeline and Plains GP Holdings to a “buy” from a “hold.” Now, 65.2% and 71.4% of the analyst rate Plains All American Pipeline and Plains GP Holdings as a “buy.” Their average target prices of $25.1 and $25.6 imply 5.4% and 6.5% upside potential from the current price levels.
Noble Midstream Partners
Noble Midstream Partners (NBLX), the MLP subsidiary of Noble Energy (NBL), is mainly involved in natural gas, crude oil, and water-related midstream services. Last week, Mizuho raised Noble Midstream Partners to a “buy.” Now, 100% of the analysts rate Noble Midstream Partners as a “buy.” Currently, Noble Midstream Partners is trading below the low range ($52) of analysts’ target price. Noble Midstream Partners’ average target price of $60.6 implies ~34% upside potential from the current price levels.
Magellan Midstream Partners
Magellan Midstream Partners (MMP) saw one rating upgrade and two target price revisions last week.
- RBC Capital Markets raised Magellan Midstream Partners to “outperform,” which is equivalent to “buy,” from “sector perform,” which is equivalent to “hold.”
- Mizuho cut the target price to $66 from $72.
- Ladenburg Thalmann cut the target price to $78 from $87.
Jefferies upgraded the partnership to a “buy.” Now, 61.1% of the analysts rate Magellan Midstream Partners as a “buy,” 27.8% rate it as a “hold,” and 11.1% rate it as a “sell.”
Spectra Energy Partners
RBC Capital Markets lowered Spectra Energy Partners (SEP) to “sector perform” from “outperform” and reduced the target price to $35 from $51. Mizuho lowered the partnership’s target price to $39 from $43. For Spectra Energy Partners, 61.1% of the analysts rate it as a “hold,” 22.2% rate it as a “buy,” and 16.7% rate it as a “sell.” Spectra Energy Partners’ average target price of $41.6 implies ~24% upside potential from the current price levels.