UPDATE: Credit Suisse Initiates Outperform, $26 PT on Inergy Midstream

Credit Suisse initiates its coverage on Inergy Midstream NRGM with an Outperform rating and a price target of $26 a share on quality high storage and transportation growth assets. Credit Suisse says, “NRGM is executing on its plan to build an integrated storage and transportation hub via a $380mm expansion program. Furthermore, we believe that NRGM will be able to add transportation capacity at favorable economics through installation of more compression. Another growth lever that management is likely to pull will be drop-drown acquisitions from its sponsor, Inergy LP (NRGY). In our view, NRGM should be able to grow distributions at a 7.2% CAGR over the next three years through a combination of organic growth and dropdowns.” NRGM closed at $19.75 a share yesterday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorPrice TargetInitiationPre-Market OutlookAnalyst RatingsCredit Suisse
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!