UPDATE: Bank of America raises PT on American Midstream LP due to new general partner providing promising growth

In a report published Wednesday morning, Bank of America analysts raised the price objective from $19.00 to $21.00 on American Midstream LP

with a Neutral rating. The report noted, "AMID's new general partner (GP), High Point Infrastructure Partners, LLC (High Point), a portfolio company of private equity firm ArcLight Capital, continues to provide comfort to AMID's growth outlook, in our view (see: ArcLight to the rescue; lower PO $19, but maintain Neutral). On 8 May 2013, AMID announced High Point entered into a long term, fee-based agreement to provide midstream services to a large independent producer in the Eagle Ford Shale. High Point plans to construct a gathering pipeline and a treating/processing facility, which will have capacity for 95 MBpd and 15 MMcf/d of natural gas. Mgmt expects the project to be operational by 1Q14. While mgmt did not yet disclose the associated capital cost, we view the project positively as it may be a meaningful drop-down opportunity for AMID, which has the right of first offer (ROFO). However, given AMID's high leverage and tight distribution coverage near-term (0.7x in 1Q13), we believe the timing/scope of drop-downs remain uncertain." American Midstream LP currently trades at $19.91.