SMLP, MMLP, and NGL Trade at Yields above 13%

Summit Midstream Partners is trading at 15% yield

Currently, Summit Midstream Partners (SMLP) is trading at a yield close to 15%. The company announced a distribution of $0.58 per unit for the first quarter, which remained unchanged sequentially. On May 8, RBC cut its target price for Summit Midstream from $20 to $18. Of the analysts surveyed by Reuters, 30% of the analysts rated Summit Midstream Partners stock as a “buy,” 60% rated it as a “hold,” and 10% rated it as a “sell.”

SMLP, MMLP, and NGL Trade at Yields above 13%

The mean target price for Summit Midstream provided by the surveyed analysts is $17.6. Summit Midstream stock is trading at $15.5. If Summit Midstream Partners attains its mean target price in a year, it would imply a price return of 14% for investors. The above graph shows the changes in analysts’ recommendations for Summit Midstream Partners in the past 12 months.

Martin Midstream Partners trades at yield close to 14%

Martin Midstream Partners (MMLP) is trading at a yield of ~14%. The MLP announced a distribution of $0.5 per unit for the first quarter, which remained unchanged sequentially. On April 27, Stifel raised its target price for Martin Midstream Partners from $15 to $16.

Of the analysts surveyed by Reuters, 40% of the analysts rated Martin Midstream Partners as a “buy,” while 60% rated it as a “hold.” The mean target price for Martin Midstream Partners is $17.7. Currently, Martin Midstream Partners is trading at $14.8. If Martin Midstream attains its mean target price, it would imply an upside of 20% in a year.

NGL Energy Partners is trading at a high yield

NGL Energy Partners (NGL) is trading at a yield of ~13.7%. The company announced a distribution of $0.39 per unit for the first quarter.

Of the analysts surveyed by Reuters, 60% rated NGL Energy Partners as a “buy,” while 40% rated it as a “hold.” The mean target price for NGL Energy Partners is $15. Currently, NGL Energy Partners stock is trading at $10.9. If NGL Energy Partners attains its target price, it would imply an upside of 38% in a year.