Citi Maintains Buy Rating and $31 PT on Chesapeake Midstream Partners

A report from Citi reiterates its Buy rating and $31 price target on Chesapeake Midstream Partners CHKM. The report states, “Stable, fee-based cash flows, greater visibility for accretive dropdowns from an assetrich GP, and organic growth from their investments in new well connects support our investment thesis. Importantly, our current estimates do not forecast drop-down transactions, which would likely be additive to our current growth forecast." CHKM closed yesterday at $24.72.