UPDATE: Jefferies Initiates Coverage on Markwest Energy Partners LP on Largest Midstream Footprint

In a report published Wednesday, Jefferies analyst Christopher Sighinolfi initiated coverage on Markwest Energy Partners LP MWE with a Buy rating and $86.00 price target. In the report, Jefferies noted, “MWE boasts the largest midstream footprint in the Marcellus and Utica regions and provides non-discretionary services throughout the natural gas value chain. We project robust 2014E coverage of ~1.5x and believe this, along with ongoing growth opportunities in the Marcellus & Utica, will underpin a lofty 5-year distribution CAGR of ~13% (2012-17) with coverage averaging ~1.3x over the period. MWE is our top pick in the MLP space.” Markwest Energy Partners LP closed on Tuesday at $66.79.