UPDATE: Credit Suisse Downgrades Exterran Partners LP to Neutral on Valuation

In a report published Friday, Credit Suisse analyst Brett Reilly downgraded the rating on Exterran Partners LP EXLP from Outperform to Neutral, but reiterated the $27.00 price target. In the report, Reilly noted, “In our view, EXLP units fairly reflect the company's low- to mid-single-digit distribution growth prospects. Our target price remains $27 and is based on a three-stage DDM. Our assumptions include a 9.0% discount rate, 3.6% 5-year distribution CAGR, 0.0% 2nd stage distribution CAGR and 0.0% terminal growth rate. Our $27 target price implies an 8.0% yield based on our forecast distribution of $2.15/unit 12 months out.” Exterran Partners LP closed on Thursday at $28.21.