JPMorgan Starts Oasis Midstream Partners (OMP) at Overweight

JPMorgan initiates coverage on Oasis Midstream Partners (NYSE: OMP) with a Overweight rating and a price target of $22.00.

Analyst Jeremy Tonet says the company offers solid growth potential at a discounted valuation while acknowledging the risks related to above-peer average on leverage, full Bakken focus, shorter core inventory, and lacking MVCs for the company. The analyst belives OAS drill bit ought to deliver steady growth. Tonet comments on how he values the stock "We base our price target on a discounted cash flow methodology where we forecast DCF/LP unit through 2028. These cash flows are discounted by our required rate of return of 10.50%, above the peer set average due to lack of MVCs, Bakken concentration risk and scale/strength of parent-sponsor. Our terminal growth rate stands below peers for the same reasons."

FY 2017 EPS estimate is for $0.42, FY 2018 EPS estimate is for $1.77 and FY 2019 EPS estimate is for $2.36.

For an analyst ratings summary and ratings history on Oasis Midstream Partners click here. For more ratings news on Oasis Midstream Partners click here.

Shares of Oasis Midstream Partners closed at $17.98 Friday.

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