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MLP Growth Stories Credit Suisse Is Buying

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MLP Growth Stories Credit Suisse Is Buying

In a new report, Credit Suisse analyst Bhavesh Lodaya initiated coverage on a number of MLPs. Overall, Credit Suisse seems to have a modestly bullish outlook for the space. Here’s what Lodaya had to say about each name.

EQT GP Holdings LP (NYSE: EQGP- Outperform

EQT Midstream Partners LP (NYSE: EQM- Outperform

Credit Suisse likes EQT’s $3.3 billion organic project backlog in the Northeast, its balance sheet and its “strong parent along with upside from dry Utica.”

Phillips 66 Partners LP (NYSE: PSXP- Outperform

Lodaya believes the company is “poised to grab a larger share of the overall organic projects given its growing size and IG balance sheet.” Phillips 66 Partners is the lone upgrade of the bunch, from Neutral to Outperform.

VTTI Energy Partners LP (NYSE: VTTI- Outperform

Credit Suisse praises the company’s “fixed, free-based cash flows from [a] geographically diverse asset base.”

Valero Energy Partners LP (NYSE: VLP- Neutral

Lodaya’s Neutral rating is based strictly on valuation, as he highlights the company’s “best-in-class balance sheet, ~2.0x coverage and top-tier distribution growth.”

Western Refining Logistics LP (NYSE: WNRL- Neutral

Lodaya sees “sponsors’ acquisitions and organic projects driving [an] increase in dropdown inventory.”

Tesoro Logistics LP (NYSE: TLLP- Neutral

Tesoro is another company that has earned a Neutral rating based strictly on valuation, as Lodaya likes its “growing focus on organic growth supported by dropdowns.”

PBF Logistics LP (NYSE: PBFX- Neutral

Lodaya sees “free-based cash flows underpinned by MVCs offsetting low volumes.”

Exterran Partners, L.P. (NASDAQ: EXLP- Outperform

Lodaya believes that “strong 12% yield and 95%+ utilization levels, along with potential organic projects represents [a] buying opportunity.”

Disclosure: the author holds no position in the stocks mentioned.

Latest Ratings for EQGP

DateFirmActionFromTo
Dec 2018JefferiesDowngradesBuyHold
Dec 2018CitigroupDowngradesBuyNeutral
Dec 2018CitigroupDowngradesBuyNeutral

View More Analyst Ratings for EQGP
View the Latest Analyst Ratings

 

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