ETRN - Equitrans Midstream upgraded at Wolfe even after this week's big gains

2023-06-01 13:19:58 ET

Equitrans Midstream ( NYSE: ETRN ) +5.6% in Thursday's trading, extending this week's gains to nearly 50% since initial news that the U.S. debt ceiling deal included specific language that should fast-track the completion of the Mountain Valley Pipeline.

Even after the big gains, Wolfe Research said Equitrans ( ETRN ) still trades well below where the stock could trade when there is more clarity on the MVP completion, upgrading the stock to Outperform from Peer Perform with an $11 price target.

MVP construction could start as soon as late June, leading to completion by year-end, and provide a substantial boost to Equitrans' ( ETRN ) cash flows and a resolution of its leverage issues, the Wolfe team said.

"Completion of MVP would mean $315M more EBITDA, all under long-term contracts, with the potential for further uplift via expansions and extensions of MVP as well as upstream gathering growth," Wolfe wrote.

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 34.5% YTD, up 14.5% in the past 12 months

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