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UPDATE: Wunderlich Securities Reiterates On Marlin Midstream Partners LP Following NuDevco Agreement

Related FISH
Marlin Midstream Partners, LP Declares Increased First Quarter 2014 Distribution to $0.355 from $0.35
UPDATE: Oppenheimer Initiates Coverage on Marlin Midstream on Strong Balance Sheet, Inherent Structural Risks

In a report published Thursday, Wunderlich Securities analyst Abhishek Sinha reiterated a Buy rating on Marlin Midstream Partners LP (NASDAQ: FISH), and raised the price target from $20.00 to $24.00.

In the report, Wunderlich Securities noted, “Marlin Midstream Partners LP (FISH) announced that it has entered into a definitive agreement with its sponsor NuDevco Midstream Development for the purchase of the East New Mexico Transloading Facility for ~$7.4mm. Based on our analysis, the transaction is accretive by $0.07/unit with an implied EBITDA multiple of 5.3x. FISH also reported 2Q14 Adj. EBITDA of $9.0mm, in line with the consensus but marginally beating our estimate of $8.8mm. DCF for the quarter was at $8.6mm, implying a strong coverage ratio of 1.3x. With increased distribution outlook and solid coverage, FISH appears to be well positioned for the next level of growth but is still trading at a steep discount to its peer group. Updating the valuation model, we are raising the target price to $24.”

Marlin Midstream Partners LP closed on Wednesday at $19.93.

Latest Ratings for FISH

DateFirmActionFromTo
Jan 2014Ladenburg ThalmannInitiates Coverage onBuy
Sep 2013OppenheimerInitiates Coverage onPerform
Sep 2013Janney CapitalInitiates Coverage onBuy

View More Analyst Ratings for FISH
View the Latest Analyst Ratings

Posted-In: Abhishek Sinha Wunderlich SecuritiesAnalyst Color Price Target Analyst Ratings

 

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