ETRN - Equitrans soars 40% as Mountain Valley Pipeline part of debt ceiling deal

2023-05-30 10:08:43 ET

Equitrans Midstream ( NYSE: ETRN ) +40.2% in early trading Tuesday after the debt ceiling deal surprised the market by including specific language that should effectively fast-track completion of the Mountain Valley Pipeline .

RBC Capital raised its rating to Outperform from Sector Perform with a $10 price target, up from $7, to reflect the higher probability of the MVP project into its sum-of-the-parts valuation, although the stock may remain volatile around headlines out of D.C.

While passage of the deal still requires approval in the House and Senate, and is thus uncertain, Wells Fargo analysts say Equitrans ( ETRN ) including MVP should be valued at $13/share.

The bill instructs the Secretary of the Army to issue all remaining permits within 21 days of passage; assuming the bill is approved, Wells Fargo said the project could be completed by the end of this year.

More on Equitrans Midstream:

• Financial and valuation comparison to sector peers
• Analysis: Equitrans Midstream, A Political Football
• Stock price return: Up 26.5% YTD, up 8% in the past 12 months

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