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MarkWest cut to Hold from Buy at Jefferies, citing valuation and headwinds

  • MarkWest Energy (MWE) is downgraded to Hold from Buy with a $75 price target, down from $78, at Jefferies, which also cuts projected FY 2014 EPS and FY 2015 EPS.
  • The firm sees Summit Midstream's (SMLP) intention to exercise its option to take a 40% stake in OH Gathering and Condensate in Q2 as a key headwind, and remains cautious on UMTP's open season.
  • MWE units are up ~11% since mid-December despite an expectation for the Summit acquisition to curtail near-term MWE Utica annual cash flows by $35M-$40M.
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