UPDATE: Goldman Sachs Upgrades MarkWest Energy Partners LP to Buy, Raises PT on Multiple Positive Factors

In a report published Wednesday, Goldman Sachs analyst Theodore Durbin upgraded the rating on MarkWest Energy Partners LP MWE from Neutral to Buy, and raised the price target from $70.00 to $81.00. In the report, Goldman Sachs noted, “We upgrade MarkWest Energy Partners (MWE) to Buy from Neutral, with 22% total return upside to our new $81, 12-month price target. We believe MWE provides the best exposure to midstream growth in the Marcellus/Utica shale due to its scale and connectivity with multiple producer customers in the fast growing region. Given its established footprint, first-mover advantage, and multi-billion dollar fee-based project backlog, we see MWE as one of the best organic growth stories under our coverage. We forecast 11% distribution growth CAGR from 2012-2015 relative to our MLP average forecast of 6%, primarily driven by Marcellus/Utica organic expansions.” MarkWest Energy Partners LP closed on Tuesday at $69.00.