UPDATE: Oppenheimer Initiates Coverage on EQT Midstream Partners LP After Recent Price Decline

In a report published Wednesday, Oppenheimer analyst Bernard Colson initiated coverage on

with an Outperform rating and $55.00 price target. In the report, Oppenheimer noted, “We initiate coverage of EQM with an Outperform rating and 12- to 18-month $55 price target and are aggressive purchasers following the recent price decline from a peak above $50. EQM has everything we look for in an MLP. Low-risk, fee-based contracts in an attractive region, low financial leverage, high distribution growth and coverage, a supportive parent with assets to sell. The parent, EQT Corp., still owns a large percentage of EQM and also now owns the IDRs which create a strong growth incentive. There is also a cushion for EQM common unit holders through subordination. While still trading at a premium to peers, that premium has moderated somewhat recently, providing what we believe is an attractive entry point.” EQT Midstream Partners LP closed on Tuesday at $46.79.