UPDATE: Citi Upgrades Hess Midstream Partners LP (HESM) to Buy

(updating comment)

Citi analyst Timm Schneider upgraded Hess Midstream Partners LP (NYSE: HESM) from Neutral to Buy, PT $22.00 (from $17.00).

The analyst comments "On a risk-adjusted basis, we believe that HESM is one of more attractive names in our coverage universe, given the contract structure with the parent, HES, which drives an attractive combination of 1) income and 2) growth potential. While many of its counterparts face declining EBITDA going forward, HESM stands out in terms of double-digit EBITDA growth expected into 2021. With the shares having outperformed Midstream peers by over 50% since mid-March, sceptics will push back on timing, though we continue to see upside from here (i.e., it is not too late). On Bakken exposure, we prefer owning HESM over Neutral-rated OKE. We believe that HESM checks important criteria in some of the key themes we are looking for in Q3 earnings and beyond."

For an analyst ratings summary and ratings history on Hess Midstream Partners LP click here. For more ratings news on Hess Midstream Partners LP click here.

Shares of Hess Midstream Partners LP closed at $17.37 yesterday.

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