Most Of The Street Is Bullish On Noble Midstream Partners
Noble Midstream Partners LP (NYSE: NBLX), which recently went public and is the subsidiary of Noble Energy, Inc. (NYSE: NBL), has become the darling of the analysts' community, with most of them upbeat on the prospects of the company.
Since listing at $26.50 on September 15, 2016, a premium to the offer price of $22.50 per share, the unit has largely been on a gradual upward trend. Midstream companies are those which transport, store and do wholesale marketing of crude or refined petroleum products.
Citi's Initiation: Buy, $33.50 Price Target
Citi expects the organic build-out at Nobel Midstream to be accretive to its unit-holders, given the roughly 4 times build to-EBITDA multiple. The firm expects the company to grow its distributions by 20 percent per annum through 2020.
JPMorgan: Overweight On Noble Midstream
Commending the company for its solid growth potential and its strong strategic partner, JPMorgan initiated coverage of the company with an Overweight rating and a $34 price target. The firm believes the company has financial flexibility and cash flow stability, which supports its attractive profile.
Barclays: High Growth, Relatively Stable
Noting that Noble Midstream is trading at a discount to the sponsored G&P MLP peer group, Barclays initiated the company at Overweight and a $35 price target. The firm believes the company offers better growth prospects relative to peer group.
Barclays highlighted the company's bright growth prospects, with potential for distribution CAGR of 20 percent through 2019. The prospects are backed by anticipated base volume growth, organic projects, drop down opportunity in excess of $1 billion and a strong balance sheet, the firm noted.
- Mizuho Securities initiated coverage on Noble Midstream Partners with a Buy rating and a $33.00 price target.
- Baird initiated Noble Midstream at Outperform.
- Deutsche Bank at Hold on Noble Midstream.
At the time of writing, shares of Noble Midstream Partners were up 2.19 percent at $28.51.
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Latest Ratings for NBL
|Nov 2016||Seaport Global||Downgrades||Buy||Neutral|
|Oct 2016||Mizuho||Initiates Coverage On||Buy|
|Sep 2016||Johnson Rice||Maintains||Buy|
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