- Antero Midstream Partners (AM -3%) is downgraded to Hold from Buy with a $31 price target at Stifel, despite reporting strong Q3 results that beat consensus.
- While AM did not raise its FY 2016 guidance and thus implies a small cash flow decline in Q4, Stifel continues see growth prospects as attractive and acknowledge management's fine execution.
- However, the firm views the execution as largely priced in the current premium valuation, with units trading at ~15x EV/near-term EBITDA compared to peers at 12.9x.