Summit Midstream +9.5% after Q4 results, Baird upgrade

Summit Midstream Partners (SMLP +9.5%) is upgraded to Outperform from Neutral with a $45 price target, up from $42, at Robert W. Baird after yesterday's announced $305M drop-down acquisition from its sponsor, Summit Investments, at an estimated 13% accretion and 8.7x EBITDA multiple.

SMLP also announced expected Y/Y distribution growth of 15%-20%, while Baird had expected 13.5%; the firm raises its 2014 and 2015 DPU estimates by 3% and 7%, respectively, to account for the transaction and updated drop-down assumptions.

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