- Crestwood Equity Partners (CEQP +4.3%) is upgraded to Buy from Hold with a $20 price target at Stifel following yesterday's Q1 earnings report.
- With a number of measures consummated during 2016, Stifel thinks CEQP management has developed a more sustainable path and can now focus on optimizing its asset base given a leverage reduction below 4.0x and distribution coverage of 1.7x in 2016.
- Even as the firm raises its rating, it stresses that the story comes with risks as CEQP lacks an integrated footprint and re-contracting persists.
- Now read How does Crestwood Equity Partners look now?