UPDATE: Citigroup Raises PT on EQT Midstream Following Sunrise Pipeline Acquisition Agreement

In a report published Wednesday, Citigroup analyst John K. Tysseland reiterated a Buy rating on EQT Midstream EQM, and raised the price target from $46.00 to $52.00.

In the report, Citigroup noted, “EQM agreed to acquire the Sunrise Pipeline and the associated Jefferson compression expansion project from EQT. The deal came slightly earlier than expected and was also larger and more accretive. Total cost, including $30 mil of capex and assuming a 3rd party contract is executed on the expansion, will be $680 mil and represents an 8.7x multiple paid on an estimated $78 million of EBITDA ('14 exit rate). See Fig. 1 on pg. 3 of this report for a run-down of the transaction and a comparison versus our original estimates.”

EQT Midstream closed on Tuesday at $43.57.