UPDATE: J.P. Morgan Initiates Coverage on Inergy Midstream LP with Overweight Rating, $27 PT
In a report published Wednesday, J.P. Morgan & Co. initiated coverage on Inergy Midstream LP (NYSE: NRGM) with an Overweight rating and $27.00 price target.
J.P. Morgan noted, “We are initiating coverage of Inergy Midstream with an Overweight rating and YE13 $27/unit price target. We believe NRGM possesses an attractive footprint in the burgeoning and infrastructure-short Marcellus shale, which has spawned several attractive expansion projects, with more likely in the future. NRGY has obtained long-term, fee-based capacity reservation charges for nearly the entire capacity of each project. Setting aside NRGM's organic growth projects, NRGY possesses several assets suitable for drop-downs that could further accelerate NRGM's growth potential. Altogether, we believe the partnership offers a compelling risk/reward proposition due to the high growth combined with a relatively low risk profile.”
Inergy Midstream LP closed on Tuesday at $23.09.
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Tags: J.P. Morgan & Co.