Loading...
Loading...
In a report published Monday, Morgan Stanley analyst Brian Lasky initiated coverage on
Enable Midstream Partners LPENBL with an Equal-Weight rating and $28.00 price target.
In the report, Morgan Stanley noted, “We see ENBL as a relatively attractive large-cap holding with size and scale, financial flexibility (~3.0x net debt/EBITDA and ~1.2x distribution coverage), and a 10.6% distribution growth CAGR over the next three years. We expect upside from further project identification — particularly in the SCOOP (South Central Oklahoma Oil Province) and as natgas supply/demand trends shift in the Mid-Con Region — and/or from M&A. We see some execution risk given the positioning of the legacy asset base and lack of diversified growth opportunities in the absence of drop downs. With the stock up ~29% since the April IPO and trading at a 4.6% yield and 16.6x 2015 P/DCF (vs. peers at 5.1% and 17.0x), we think the units are fairly priced.”
Enable Midstream Partners LP closed on Friday at $25.89.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in