UPDATE: Morgan Stanley Initiates Summit Midstream at Equal-Weight Pending Growth Visibility

Morgan Stanley initiated coverage on Summit Midstream

with an Equal-weight rating and a $23 price target. Morgan Stanley commented, "Why Equal-weight? Solid Contracts: We expect SMLP to benefit from its minimum volume commitments and fee escalators. Basin Risk. While current producer plans indicate continued revenue growth for SMLP, the company's assets lie in the Barnett Shale and Piceance, areas where we have seen producer curtailments in low natural gas environments. Risk-Reward Fairly Balanced. The risk-reward is fairly balanced with few near-term catalysts to change the markets view." Summit Midstream closed at $3.55 on Monday.