- Enable Midstream Partners (ENBL +0.9%) is initiated with a Hold rating and $16 price target at Stifel, which says ENBL has one of the enviable gathering and processing footprints in the emerging SCOOP/STACK plays and continues to generate most of its margin through fee-based contracts.
- Despite the attractive footprint and contract mix, the firm feels ENBL merits only a Hold rating as the partnership currently trades at an EV/NTM LP adjusted EBITDA multiple of 12.1x its estimate, modestly below its peer comp group of 13.7x on average but above its trailing one-year average of 11.3x and in line with its trailing six-month average.