UPDATE: Jefferies Initiates Coverage on Access Midstream Partners LP with Buy Rating, $57 PT on Robust Coverage, Fee-Based Growth Projects

In a report published Wednesday, Jefferies analyst Christopher Sighinolfi initiated coverage on Access Midstream Partners LP ACMP with a Buy rating and $57.00 price target. In the report, Jefferies noted, “ACMP is a geographically diverse natural gas gatherer & processor providing non-discretionary services to producer customers. While it currently trades with a relatively modest ~4.2% distribution yield, its cash flows & payouts are underpinned by a best-in-class fee-based contract structure. We believe ACMP's robust coverage & numerous fee-based growth projects will support a 5-year distribution CAGR of ~16% through 2017; we initiate with a Buy.” Access Midstream Partners LP closed on Tuesday at $45.61.