ETRN - Equitrans double downgraded at Goldman as MVP delay a major headwind

Equitrans Midstream ( NYSE: ETRN ) -3.5% in Wednesday's trading as Goldman Sachs downgraded units to Sell from Buy and slashed its price target to a Street-low $6 from $9.50, citing continued delays to the Mountain Valley Pipeline project.

"We no longer see a strong case for MVP completion this year given our discussion [of] the Appalachian gas section... notably new regulatory delays, and push our in-service assumption by a year to Q4 2024, [driving] our EBITDA estimates lower through the medium-term, increases capex needs, increases leverage, and leaves valuation stretched," Goldman's John Mackay wrote.

"MVP has been and will continue to be, in our view, the major driver for performance for the stock, representing ~$400M of run-rate EBITDA (inclusive of associated projects/contracts) vs. ~$1.4B of current EBITDA for the company," according to Mackay.

Equitrans Midstream ( ETRN ) suffered through 2022 as its MVP project faced legal setbacks, but investors can "count on the dividends, not the government," DT Analysis writes in a report published on Seeking Alpha .

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