Western Midstream Partners: Analysts’ Views



Western Midstream Partners

Western Midstream Partners (WES) offers a solid potential upside of more than 30% compared to its current market price of $31.85. Analysts have given the company a median target price of $41.42.

Among the 12 analysts covering Western Midstream Partners, two recommended a “strong buy,” five recommended a “buy,” and five recommended a “hold.” None of the analysts recommended a “sell” as of April 11.

WES anr

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Western Gas Partners and Western Gas Equity Partners completed their merger in February and formed Western Midstream Partners. Currently, Western Gas Partners offers a distribution yield of 7.6%, which is higher than its five-year average yield close to 4.2%. The company has increased its distribution ~30% compounded annually in the last five years.

Western Gas Partners stock is trading at an EV-to-EBITDA multiple of 11.3x, which is higher than many of its peers.

Peer comparison

Buckeye Partners (BPL) is trading at a valuation multiple of 11x, which is marginally lower than the industry average. The company is trading at a distribution yield of 9%. Buckeye Partners increased the distribution 1.4% in the last five years.

Based on analysts’ estimates, Buckeye Partners has a target price of $35.8 compared to its current market price of $33.6. The target price indicates a potential upside of ~7% for the next 12 months.


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