UPDATE: Stifel Reiterates Buy Rating, Lowers PT on Southcross Energy Partners LP as Processing Volumes are Increasing

In a report published Monday, Stifel analyst Selman Akyol reiterated a Buy rating on

, but lowered the price target from $25.50 to $22.00. In the report, Stifel noted, “Southcross is a gathering and processing MLP with assets primarily located in the rapidly growing Eagle Ford in South Texas. On August 4th Southcross Energy LLC combined with TexStar Midstream Services, a private gathering and processing partnership. Together, the combined assets place the new partnership in the top five gathering and processing companies in the Eagle Ford. Southcross Energy Partners now has a larger footprint as well as pipeline of dropdown assets to support its growth profile. While we continue to expect distributions to be flat through the end of the year, we expect distribution growth to begin in 2015. Management is also holding it first analyst day early December and we anticipate getting more details as how 2015 should unfold. We continue to rate the units Buy but are adjusting our target price lower to $22.00 from $25.50.” Southcross Energy Partners LP closed on Friday at $19.04.