ETRN - Equitrans double-upgraded at Morgan Stanley on pipeline potential

2023-06-05 11:35:20 ET

Equitrans Midstream ( NYSE: ETRN ) +4.1% in Monday's trading as Morgan Stanley double upgraded the stock to Overweight from Underweight with a Street-high $14 price target from $7 previously, which now incorporates the anticipated completion of the Mountain Valley Pipeline in its forecasts.

Including Mountain Valley Pipeline and related impacts for the full year would raise Equitrans' ( ETRN ) 2024 EBITDA before deferred revenue, to nearly $1.49B, Morgan Stanley analyst Robert Kad said, also noting MVP has fully subscribed its 2B cf/day of capacity under firm commitments with 20-year terms.

In the bank's levered distributable cash flow analysis, MVP's inclusion adds $7/share in value, raising its stock price target to $14 and implying 60% total return upside including a 6.6% dividend yield.

Equitrans ( ETRN ) surged nearly 50% since initial news that MVP was included in the debt ceiling deal .

More on Equitrans Midstream:

• Financial and valuation comparison to sector peers
• Analysis: Equitrans Midstream: This 7.31%-Yielder Is Worth Considering Today
• Stock price return: Up 41% YTD, up 14.5% in the past 12 months

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