Cone Midstream Receives a Hold from Credit Suisse

Credit Suisse analyst John Edwards reiterated a Hold rating on Cone Midstream (NYSE: CNNX) today and set a price target of $24. The company’s shares opened today at $20.56, close to its 52-week high of $22.45.

Edwards said:

“We continue to forecast ~15% y/y distribution growth through 2017, in line with guidance. We are raising our TP by $2, to $24 (primarily on 2x higher multiples) based on a blended valuation, implying ~25% NTM total returns, in line with median returns for our coverage, supporting our Neutral rating. 2016 Guidance Moves Higher; Adjusting Estimates: CNNX raised its 2016 EBITDA guidance by ~4% to $103-108mm (from $96-106mm) in line with us and the Street’s median $108mm estimate. DCF moved up by ~5% to $89-94mm (from $82-92mm). We have updated our forecasts following the 3Q results and expect EBITDA and DCF of ~$109/$88mm for 2016. Mgmt. expects modest 4Q growth over 3Q16 and CNNX’s current annualized 9M 2016 EBITDA (~$108.5) is tracking above the high end of its guidance range.”

According to, Edwards is a 2-star analyst with an average return of 0.2% and a 47.0% success rate. Edwards covers the Basic Materials sector, focusing on stocks such as Calumet Specialty Products, Dcp Midstream Partners Lp, and Antero Midstream Partners.

Cone Midstream has an analyst consensus of Moderate Buy, with a price target consensus of $22.

Based on Cone Midstream’s latest earnings report from June 30, the company posted quarterly revenue of $58.41M and quarterly net profit of $23.22M. In comparison, last year the company earned revenue of $53.75M and had a net profit of $58.97M.

CONE Midstream Partners LP owns, operates, develops, and acquires natural gas gathering and other midstream energy assets in the Marcellus Shale in Pennsylvania and West Virginia. It operates its business through the following business segments: Anchor Systems, Growth Systems, Additional Systems, and Other. The company was founded on May 30, 2014 and is headquartered in Canonsburg, PA.