Goldman cuts USA Compression to Neutral following results, acquistion

USA Compression Partners (USAC +3.5%) — which yesterday reported Q2 results and announced the acquisition of $183M in compression assets — is downgraded to Neutral from Buy at Goldman.

Price target raised to $25 from $22.

Growth potential is "group-average," analyst Ted Durbin says, adding that although GS likes USAC's "exposure to shale-driven infrastructure growth via fee-based cash flows with no commodity risk," the shares are probably fully valued.

See the conference call (transcript) for Durbin's back and forth with management regarding the recent acquisition and what it means for EBITDA.

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