UPDATE: Morgan Stanley Initiates Coverage on SemGroup Corp. with Overweight Rating, $62 PT on More Balanced Risk/Reward

In a report published Wednesday, Morgan Stanley analyst Stephen J. Maresca initiated coverage on SemGroup Corp. SEMG with an Overweight rating and $62.00 price target. In the report, Maresca noted, “With our Diversified Natural Gas (i.e., C-Corp stocks) industry up ~20% YTD and EV/EBITDA and P/E multiples up 13% and 21% y/y, respectively (giving more credit to longer-term growth), we see a more balanced near-term risk-reward (1.2:1.0 bull/bear skew). We reiterate our longer-term Attractive industry view predicated on earnings growth of ~9% through 2015e, driven largely by volumetric and contracted midstream projects. However, with stock prices elevated, we are looking to be more selective. We are initiating coverage of SEMG (Overweight) in a separate report today.” SemGroup Corp. closed on Tuesday at $49.82.