Biden's Debt Ceiling Bill Boosts Equitrans Midstream Corp: Analyst Foresees Bright Horizon

Equitrans Midstream Corp ETRN has been in focus after President Joe Biden signed a bill that extends the government’s debt ceiling by two years.

The bill provided a “clear and comprehensive directive” that is likely to ensure the completion of the Mountain Valley Pipeline (MVP) project, according to Morgan Stanley.

The Equitrans Midstream Analyst: Robert Kad upgraded the rating for Equitrans Midstream from Underweight to Overweight, while raising the price target from $7 to $14.

The Equitrans Midstream Thesis: The MVP is likely to resume by July and be completed within four to five months, Kad said in the upgrade note.

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“Including MVP and related impacts for the full year would raise ETRN's 2024 EBITDA, before deferred revenue, to $1.487 Bn,” the analyst wrote.

“Assuming completion of MVP later this year, a full year contribution of MVP should add ~$220mm of EBITDA in 2024,” he added.

ETRN Price Action: Shares of Equitrans Midstream were up 4.63% to $9.50 on Monday.

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