Credit Suisse Lowers Price Target On Enable Midstream Partners LP On Commodity Headwinds, Lower Growth Capital Spend

In a report published Tuesday, Credit Suisse analyst John Edwards reiterated an Outperform rating on Enable Midstream Partners LP (NYSE: ENBL), but lowered the price target from $26.00 to $22.00.

In the report, Credit Suisse noted, “We are reducing our 2015-2017 estimates by 7%, 6% and 5% for gross margin and 15%, 12% and 12% for EBITDA, respectively. Our updated estimates reflect our assumption that for 2015 y/y gas gathering volume growth slows by 100bps to 9%, gas processing volumes slow by 200bps to 23% and processing spreads will be squeezed as indicated in our next bullet below. We have also reduced our growth capex estimates by $200mm in 2015, $150mm in 2016 and $125mm in 2017. ENBL has already issued a press release indicating its intention to lower its outlook though specifics are to wait until 4Q conference call scheduled for Feb 18.”

Enable Midstream Partners LP closed on Monday at $17.60.