MPLX LP Update by Stifel - Jan 12

MPLX LP Update by Stifel - Jan 12

Postby dan_s » Tue Jan 12, 2021 12:30 pm

MPLX LP (MPLX, $23.88, Buy; Target $27.00) -
Updating MPLX Estimates Heading into 4Q20 Earnings - Selman Akyol, analyst at Stifel
We are updating our MPLX estimates prior to the partnership's 4Q20 earnings. Specifically, we increase our 4Q20 revenue estimate by $23 million or 1.7% to reflect the current commodity prices and demand outlook. While near-term macro headwinds remain, MPLX's conservative financial profile remains attractive and we favor the natural gas outlook, believing MPLX is well positioned to benefit from its Northeast footprint. We are remaining Buy rated on MPLX, and raising our target price to $27.00.

MPLX is one of the large-cap midstream companies in our High Yield Income Portfolio. It is an MLP. At the current share price annual yield is ~11.5% and I do expect them to increase quarterly distributions in 2H 2021.

My valuation on 12-10-2020 was $26.00. If the company's guidance confirms my 2021 forecast, my valuation will be increasing.
Dan Steffens
Energy Prospectus Group
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