UPDATE: Credit Suisse Initiates Coverage On CONE Midstream Partners LP On Strong Sponsor

In a report published Monday, Credit Suisse analyst John Edwards initiated coverage on CONE Midstream Partners LP CNNX with an Outperform rating and $35.00 price target. In the report, Credit Suisse noted, “CNNX's initial phase of growth will be driven by volumetric growth on 496,000 net acres dedicated to it by the sponsors in the Marcellus. Our model assumes ~$100mm in annual organic spend at CNNX. Specifically, we estimate gathering throughput of ~3,000 Bbtu/d at the end of 2019. The next leg of growth will be fueled by dropdown of CONE's interest in Anchor (25%), Growth (95%) and Additional (95%) gathering systems. We model ~$3.3 billion of dropdowns from 2018 through 2024 based on a 9x EV/EBITDA multiple, translating to ~$330-370mm in EBITDA.” CONE Midstream Partners LP closed on Friday at $27.03.