Equitrans Midstream double-upgraded at Morgan Stanley on expected Mountain Valley Pipeline completion

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Analysts told investors that the re-rating is a result of the expected completion of the Mountain Valley Pipeline.

“Following passage of the Fiscal Responsibility Act to raise the debt ceiling, inclusion of language to expedite completion of Mountain Valley Pipeline should now clear a path to project completion,” the analysts wrote.

They added that including the Mountain Valley Pipeline and related impacts for the full year would raise ETRN’s 2024 EBITDA, before deferred revenue, to $1.487 billion.

“In our unlevered DCF analysis, inclusion of MVP adds $7/sh of value, raising our ETRN price target to $14/sh (from $7/sh) and implying +60.8% total return upside (inclusive of 6.6% dividend yield),” they concluded.