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EQM Midstream Partners: Analysts’ Recommendations

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Apr. 12 2019, Updated 11:10 a.m. ET

EQM Midstream Partners

So far, EQM Midstream Partners (EQM) has risen ~6% in 2019. Analysts seem cautious about the stock. Analysts have given EQM Midstream a target price of $52.67. The target price indicates a potential upside of almost 15% for the next 12 months compared to its current market price of $45.98.

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Among the 13 Reuters-surveyed analysts covering EQM Midstream Partners, nine recommended a “hold,” three recommended a “strong buy,” and one recommended a “buy.” None of the analysts recommended a “sell” as of April 11. Jefferies cut EQM Midstream Partners’ target price from $58.0 to $57.0 on March 28.

EQM Midstream is trading at a distribution of 9.8%, which is higher than its five-year average yield of 4.4%. The company increased its distribution per unit 23% compounded annually in the last five years. EQM Midstream Partners is trading at an EV-to-EBITDA multiple of 6.7x—compared to its peers’ average of 11x–12x. The stock has fallen more than 20% over the past 12 months.

NGL Energy Partners (NGL) is trading at a valuation multiple of 8.7x, which is higher than EQM Midstream Partners. NGL Energy Partners offers a solid distribution yield of 11.2%, which is higher than the Alerian MLP ETF (AMLP).

NGL Energy Partners has a median target price of $14.71 compared to its current market price of $13.98, which implies an upside potential of 5.2% for the next 12 months.

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