UPDATE: Goldman Sachs Downgrades USA Compression Partners LP to Neutral, Raises PT on Current Valuation

In a report published Wednesday, Goldman Sachs analyst Theodore Durbin downgraded the rating on

from Conviction List Buy to Neutral, but raised the price target from $22.00 to $25.00. In the report, Goldman Sachs noted, “We downgrade USA Compression Partners (USAC) to Neutral from Buy with 9% total return upside to our new 12-month $25 target price. We still like USAC's exposure to shale-driven infrastructure growth via fee-based cash flows with no commodity risk, backed by younger and higher-margin compression assets. However, we believe current valuation adequately reflects its group-average growth potential given its short-duration contracts which drive higher-margin cyclicality, along with tight coverage and high leverage. Since adding USAC to the Buy list on 2/10/13, units are up 37.4% vs. the S&P 500 up 12.0%.” USA Compression Partners LP closed on Tuesday at $24.48.