UPDATE: Goldman Sachs Initiates Coverage on Markwest Energy Partners LP with Neutral Rating, $59 PT on Growth Offset by Risks

In a report published Wednesday, Goldman Sachs analyst Theodore Durbin initiated coverage on Markwest Energy Partners LP

with a Neutral rating and $59.00 price target. In the report, Durbin noted, “We initiate coverage of MarkWest Energy Partners, LP (MWE) with a Neutral rating and a $59, 12-month target price. Our target price implies 2% total return upside (including distribution yield) versus average upside of 8% for our coverage. While we are positive on (1) MWE's exposure to the high growth Marcellus and Utica shale plays, (2) low cost of capital, and (3) continued move towards fee-based earnings, we remain concerned about (1) earnings exposure to weak NGL prices, (2) volume sensitivity to producer activity, (3) increased competition and execution risk, and (4) potential for further equity dilution.” Markwest Energy Partners LP closed on Tuesday at $61.40.