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EnLink Midstream advances as UBS upgrades to Buy

Published 10/24/2017, 11:53 AM
Updated 10/24/2017, 11:53 AM
© Reuters.  EnLink Midstream advances as UBS upgrades to Buy
  • EnLink Midstream (ENLC +1.6%) is higher after UBS upgrades shares to Buy from Neutral with a $19 price target following the recent selloff, as it believes ENLC's 16% interest in Oklahoma Tall Oak is underappreciated.
  • The firm foresees a 37% jump in profit in ENLC's Oklahoma segment for 2018 due to expected rig growth and well completions.
  • UBS says most investors tend to view the earnings direction of EnLink Midstream Partners (ENLK +0.3%) as the key driver of ENLC, and the firm estimates Oklahoma Tall Oak will represent ~11% of 2017 distributable cash flow; however, UBS expects the number to rise to ~19% in 2018, likely a reason why the firm's estimated 2018 ENLC DCF is ~3% above consensus.
  • Now read: 9% Yielder That You Should Avoid


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