UPDATE: Goldman Sachs Initiates Coverage on EQT Midstream Partners LP with Buy Rating, $59 PT on Sector-Leading Growth Story

In a report published Monday, Goldman Sachs analyst Theodore Durbin initiated coverage on

with a Buy rating and $59.00 price target. In the report, Goldman Sachs noted, “We initiate coverage of EQT Midstream Partners (EQM) with a Buy rating and 12-month, $59 target price that implies 22% total return (including yield) versus 16% average total return potential for Energy MLPs. EQM's FERC-regulated pipeline and storage assets offer stable, low-risk fee-based cash flows supported by firm long-term contracts. A robust production outlook in the Marcellus and meaningful inventory of dropdown assets at the parent enhances distribution growth visibility. EQM has a low cost of capital, no debt outstanding, high liquidity and an aligned sponsor that should bolster the partnership's multi-year double-digit distribution growth outlook.” EQT Midstream Partners LP closed on Friday at $48.28.