Citigroup Issues Pessimistic Forecast for Hess Midstream Partners (NYSE:HESM) Stock Price

Key Points

• Citigroup cut Hess Midstream Partners’ price target from $37 to $33 while maintaining a “neutral” rating, implying 5.57% upside from the prior close.
• Analyst sentiment is broadly cautious: the stock has one Buy, five Hold, and three Sell ratings, producing a consensus “Reduce” rating and an average target of $34.71.
• HESM shares fell to $31.26, near their 12-month low of $30.92, despite the company exceeding quarterly earnings and revenue estimates; institutional investors own 98.97% of the stock.

Hess Midstream Partners (NYSE:HESM - Get Free Report) had its price objective cut by Citigroup from $37.00 to $33.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The firm presently has a "neutral" rating on the stock. Citigroup's price objective points to a potential upside of 5.57% from the company's previous close.

Several other research analysts have also recently weighed in on the stock. Weiss Ratings restated a "buy (b)" rating on shares of Hess Midstream Partners in a research report on Monday, September 21st. JPMorgan Chase & Co. lowered Hess Midstream Partners from a "neutral" rating to an "underweight" rating and set a $39.00 price objective on the stock. in a research report on Friday, October 2nd. UBS Group decreased their price objective on Hess Midstream Partners from $37.00 to $34.00 and set a "neutral" rating on the stock in a research report on Tuesday. Finally, Morgan Stanley lowered their target price on Hess Midstream Partners from $39.00 to $30.00 and set an "underweight" rating for the company in a research note on Tuesday. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Reduce" and an average price target of $34.71.

Hess Midstream Partners Price Performance

HESM traded down $1.11 during midday trading on Tuesday, hitting $31.26. The company had a trading volume of 3,313,662 shares, compared to its average volume of 1,639,258. Hess Midstream Partners has a twelve month low of $30.92 and a twelve month high of $41.44. The company has a market capitalization of $6.44 billion, a PE ratio of 10.78 and a beta of 0.58. The company has a debt-to-equity ratio of 9.39, a quick ratio of 0.77 and a current ratio of 0.77. The firm's 50-day simple moving average is $39.03 and its 200-day simple moving average is $38.88.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last announced its earnings results on Monday, August 3rd. The company reported $0.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.67 by $0.08. Hess Midstream Partners had a net margin of 23.23% and a return on equity of 92.18%. The company had revenue of $399.00 million for the quarter, compared to analyst estimates of $395.96 million. During the same period in the prior year, the business earned $0.74 earnings per share. Hess Midstream Partners's quarterly revenue was down 3.7% on a year-over-year basis. Equities research analysts predict that Hess Midstream Partners will post 2.95 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of HESM. Bank of New York Mellon Corp raised its holdings in Hess Midstream Partners by 67.5% in the 1st quarter. Bank of New York Mellon Corp now owns 3,752,002 shares of the company's stock valued at $145,840,000 after acquiring an additional 1,512,007 shares during the period. Miller Howard Investments Inc. NY boosted its holdings in shares of Hess Midstream Partners by 3.2% during the first quarter. Miller Howard Investments Inc. NY now owns 1,491,899 shares of the company's stock worth $57,990,000 after acquiring an additional 45,584 shares during the period. Lazard Asset Management LLC grew its position in shares of Hess Midstream Partners by 1,110.7% in the first quarter. Lazard Asset Management LLC now owns 1,069,244 shares of the company's stock valued at $41,562,000 after purchasing an additional 980,929 shares during the last quarter. First Trust Advisors LP grew its position in shares of Hess Midstream Partners by 34.9% in the first quarter. First Trust Advisors LP now owns 959,321 shares of the company's stock valued at $37,289,000 after purchasing an additional 247,973 shares during the last quarter. Finally, Bank of America Corp DE grew its position in shares of Hess Midstream Partners by 38.7% in the second quarter. Bank of America Corp DE now owns 446,037 shares of the company's stock valued at $16,771,000 after purchasing an additional 124,507 shares during the last quarter. Institutional investors own 98.97% of the company's stock.

About Hess Midstream Partners

Hess Midstream Partners LP NYSE: HESM is a fee-based midstream energy company that owns and operates infrastructure supporting crude oil, natural gas and produced-water production in the Bakken Shale of North Dakota. The partnership primarily serves Hess Corp. and other producers operating in the region.

Its assets include systems for gathering and processing natural gas, gathering and transporting crude oil, and handling and disposing of produced water. Hess Midstream also provides storage, terminal and transportation services, helping connect production sites with downstream pipelines, rail facilities and other market outlets.

The company was formed to own midstream assets previously developed or operated by Hess and began trading publicly in 2017.

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