UPDATE: Morgan Stanley Upgrades Access Midstream Partners LP to Overweight
Morgan Stanley raised its rating on Access Midstream Partners LP (NYSE: ACMP) from Equal-weight to Overweight and increased its price target to $39.
Morgan Stanley said, "Best-in-class contractual protection (all fees), healthy distribution coverage (1.3x+), low balance sheet leverage (<3.0x) and growing customer diversity (CHK may only represent 50% of its total customer profile going forward) provide a high degree of cash flow stability, while a large inventory of asset dropdowns and organic projects position ACMP well for sustainable top-tier growth. We believe ACMP can post annual distribution growth at or above 16% in both 2013 and 2014, with an upside bias should GIP elect to accelerate dropdowns."
Access Midstream Partners LP closed at $31.28 on Monday.
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