UPDATE: Morgan Stanley Initiates MPLX LP at Overweight on Low Risk, Growth Drivers
Morgan Stanley initiated coverage on MPLX LP (NYSE: MPLX) with an Overweight rating and a $33 price target.
Morgan Stanley noted, "Key Value Drivers: 1) Wagon Is Hitched to MPC: MPLX is supported by stable cash flows (~100% fee revenues, contract terms up to 10 years) and multiple growth levers as organic opportunities unfold in the Midwest given rising oil production. 2) Minimum volume commitments: MPC has committed to take-or-pay contracts that support ~73% of MPLX's revenues. 3) Acquisition Potential Is High: We estimate that MPC has $4–9 billion in midstream assets available for dropdowns into MPLX, helping to boost cash flow per unit for years. 4) Other growth levers: MPC plans to use MPLX to grow midstream assets as it enters new regions. We expect new organic projects that MPLX undertakes will be supported by MPC volumes."
MPLX LP closed at $27.05 on Monday.
Latest Ratings for MPLX
|Jan 2017||Wells Fargo||Upgrades||Market Perform||Outperform|
|Dec 2016||Evercore ISI Group||Upgrades||Hold||Buy|
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