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UPDATE: Morgan Stanley Initiates Coverage on Midcoast Energy Partners as Drop-Downs Offer Upside, but Volume Risk Remains

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UPDATE: Credit Suisse Initiates Coverage on Midcoast Energy Partners on Transparent Distribution Growth at Attractive Price

In a report published Tuesday, Morgan Stanley analyst Stephen J. Maresca initiated coverage on Midcoast Energy Partners LP (NYSE: MEP) with an Equal-Weight rating and $20.00 price target.

In the report, Morgan Stanley noted, “Strategic relationship with EEP provides support, possible growth. Midstream operator EEP is MEP's general partner (GP) and is incentivized to grow the partnership through its ownership of GP and LP interests. Built-in growth through drop-downs. Visible growth potential through midstream drop-down inventory at EEP (~$200mm in midstream EBITDA still at EEP).”

Midcoast Energy Partners LP closed on Monday at $18.15.

Posted-In: Morgan Stanley Stephen J. MarescaAnalyst Color Initiation Analyst Ratings


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