Wunderlich Securities Lowers Price Target On American Midstream Partners LP As Company Reevaluates 2015 Guidance

In a report published Friday, Wunderlich Securities analyst Jeff Birnbaum reiterated a Buy rating on American Midstream Partners LP AMID, but lowered the price target from $23.00 to $20.00. In the report, Wunderlich Securities noted, “Given the current uncertain commodity backdrop, American Midstream (AMID) announced it will keep its 4Q distribution flat vs. 3Q. The partnership expects to be able to maintain its current distribution in 2015 with existing assets, but will update 2015 guidance with final 4Q results. While its ability to withstand current commodity headwinds is encouraging, the potential for flat distributions in 2015 (vs. 4Q) is disappointing. That said, preliminary 4Q results seem to have surpassed Wunderlich/consensus estimates, and we believe AMID is choosing higher 2015 distribution coverage vs. growth for now. Dropdowns and growth projects could also provide upside. We are lowering our price target to $20 from $23, but we maintain our Buy rating as we await updated guidance.” American Midstream Partners LP closed on Thursday at $17.75.